Reserves that banks are required by law to keep on hand to back up their deposits are called
A) required reserves.
B) borrowed reserves.
C) actual reserves.
D) excess reserves.

Name: Reserves that banks are required by law to keep on hand to back up their deposits are called A) required reserves. B) borrowed reserves. C) actual reserves. D) excess reserves.
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Question

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Required reserves are the reserves that banks are legally required to keep on hand to back up their deposits.

Reserves That Banks Are Required by Law to Keep on Hand