The difference between actual reserves and required reserves is
A) excess reserves.
B) net worth.
C) borrowings from the Fed.
D) illegal reserves.

Question

Quizplus · Accepted Answer

Actual reserves refer to the amount of funds banks hold in reserve, while required reserves refer to the amount of funds banks are required to hold by government regulation. The difference between actual reserves and required reserves is known as excess reserves.

The Difference Between Actual Reserves and Required Reserves Is