When funds are deposited in a savings account, the excess reserves of banks are unaffected.

Name: When funds are deposited in a savings account, the excess reserves of banks are unaffected.
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Question

When funds are deposited in a savings account, the excess reserves of banks are unaffected.​

Quizplus · Accepted Answer

When funds are deposited in a savings account, the bank's reserves increase, as it now has more deposits to hold onto. This affects the bank's excess reserves, which are the reserves in excess of the amount required by law.

When Funds Are Deposited in a Savings Account, the Excess