Suppose a commercial bank has a level of target reserves of $500 million and actual reserves of $575 million. This bank's is/are $75 million.

Question

Quizplus · Accepted Answer

Excess reserves are the amount of reserves held by a bank above the required level of reserves. In this case, the bank's actual reserves exceed their target reserves by $75 million, indicating that they have $75 million in excess reserves.

Suppose a Commercial Bank Has a Level of Target Reserves