Excess reserves are
A) liquidity funds minus actual reserves.
B) actual reserves minus desired reserves.
C) desired reserves minus actual reserves.
D) required reserves minus actual reserves.
Correct Answer:
Verified
Q264: Suppose a bank has $1,500,000 in deposits
Q265: If the desired reserve ratio is 3
Q266: A bank with $100 million in deposits
Q267: Commercial banks are able to create money
Q268: If Bank A holds $200 in reserves,
Q270: When bank deposits increase from $1 million
Q271: The difference between actual reserves and required
Q272: Excess reserves are equal to
A) actual reserves
Q273: Suppose that a bank begins with $500
Q274: Suppose a bank is exactly meeting its
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents