What bank assets are liquid assets? What is the largest asset of commercial banks?
1) its short-term Treasury bills and overnight loans to other banks
2) the money in its ATMs and the bonds that it owns, which are issued by the U.S. government and by other large, safe organizations
3) currency in its vaults plus the balance on its reserve account at a Federal Reserve Bank
4) the currency in its vaults and the money in checking and savings deposits
