Excess reserves refer to the
A)difference between a bank's vault cash and its reserves deposited at the Federal Reserve Bank.
B)minimum amount of actual reserves a bank must keep on hand to back up its customers deposits.
C)difference between actual reserves and loans.
D)difference between actual reserves and required reserves.

Question

Quizplus · Accepted Answer

Excess reserves are the funds that a bank holds beyond the required reserves set by the central bank. They are calculated as the difference between a bank's actual reserves and the required reserves.

Excess Reserves Refer to the