Equilibrium in the market for reserves is achieved when

Question

Quizplus · Accepted Answer

Equilibrium in the market for reserves is achieved when the total reserves held by banks (required reserves plus excess reserves) equal the total reserves available in the banking system (nonborrowed plus borrowed reserves). This balance ensures that banks have enough reserves to meet their required reserves and any additional reserves they wish to hold, without creating excess demand or supply in the market for reserves.

Equilibrium in the Market for Reserves Is Achieved When