Excess reserves are equal to
A) the sum of desired reserves plus any reserves that are more than are required.
B) desired reserves minus actual reserves.
C) actual reserves plus desired reserves.
D) actual reserves minus desired reserves.

Question

Quizplus · Accepted Answer

Excess reserves are the actual reserves minus the desired reserves, as desired reserves are the amount of reserves that the bank wants to hold to meet its obligations and legal requirements, and any reserves exceeding this amount are considered excess reserves.

Excess Reserves Are Equal to