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

Question

Quizplus · Accepted Answer

Excess reserves are the amount of reserves a bank holds beyond the required reserves. Therefore, they are calculated as actual reserves minus desired (or required) reserves.

Excess Reserves Are Equal to