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Vault Cash

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Vault cash
Cash kept on hand in a depository institution's vault to meet day-to-day business needs, such as cashing checks for customers; can be counted as a portion of the institution's required reserves.
Vault Cash
Capital kept at a bank or other financial institution to cover day-to-day expenses such as cash withdrawals. It is called vault cash because the bulk of it is traditionally kept in a heavily-guarded vault.
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Or they could deposit more of their vault cash at the Fed, which would use the money to buy Treasuries.
QUIETLY, THE FED SEEKS MORE POWER by Peter Coy / BusinessWeek
Key figures in the report also included the third quarter's money reserves or vault cash plus amount in demand accounts (M1), which stood at BD1.
Money supply registers 6.7pc growth by Gulf Daily News (Manama, Bahrain)
All depository institutions must hold a percentage of certain types of deposits as reserves in the form of vault cash, as a deposit in a Federal Reserve Bank, or as a deposit in a pass-through account at a correspondent institution.
Annual adjustments for reserve calculations and deposit reporting by Federal Reserve Bulletin
 
 
 
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