Any amount that a bank chooses to keep on hand beyond what it is required to is called:
A) excess reserves.
B) excess deposits.
C) federal funds.
D) extra holdings.

Question

Quizplus · Accepted Answer

Excess reserves are any funds held by a bank that exceed the required reserve ratio set by the Federal Reserve. Banks may choose to keep excess reserves on hand for a variety of reasons, including to cover unexpected withdrawals or to be prepared for sudden increases in demand for loans.

Any Amount That a Bank Chooses to Keep on Hand