1. If the bank replenishes its vault cash, its account at the ReserveBank is drawn down in exchange for notes issued by the Federal Reserve.

2. Reservebalances and vault cash in banks, however, are not counted as part of the moneystock held by the public.

3. Depository institutions must hold reserves in the form vault cash or deposits with Federal Reserve Banks.

4. The banks can keepthe currency as vault cash, which also counts as reserves.

5. Finally, itmust maintain legally required reserves, in the form of vault cash and/orbalances at its Federal Reserve Bank, equal to a prescribed percentage of itsdeposits.

6. Deposits of the U.S. Treasury, depository institutions, foreign banks and official institutions, as well as vault cash in depository institutions are excluded.

7. When a depositor cashes a check(http://sentencedict.com), both deposits and vault cash reservesdecline.

8. It says that you have to keep deposits with us here at the central bank; either that or else keep vault cash and show that you have it as reserves for your deposits.

9. Treasury, depository institutions, foreign banks and official institutions, as well as vault cash in depository institutions are excluded.

10. Deposit ory institutions must hold reserves in the form of vault cash or deposits with Federal Reserve Banks.