Which of the following is correct?
A) Required reserves minus actual reserves equal excess reserves.
B) Required reserves equal excess reserves minus actual reserves.
C) Required reserves equal actual reserves plus excess reserves.
D) Actual reserves minus required reserves equal excess reserves.

Question

Quizplus · Accepted Answer

Excess reserves are the amount of reserves held by banks above the required level. The formula for calculating excess reserves is actual reserves minus required reserves. Therefore, actual reserves minus required reserves equal excess reserves.

Which of the Following Is Correct