The amount by which total reserves are greater than required reserves.
A) Excess reserves
B) Required reserves
C) Fractional reserve system
D) Bank reserves

Question

Quizplus · Accepted Answer

Excess reserves refer to the amount of reserves held by banks that is greater than the required amount set by the central bank. This allows banks to have additional funds available for lending and investment activities.

The Amount by Which Total Reserves Are Greater Than Required