Excess reserves are equal to:
A) actual reserves minus vault cash.
B) required reserves minus vault cash.
C) actual reserves minus required reserves.
D) required reserves divided by the reserve requirement.

Question

Quizplus · Accepted Answer

Excess reserves are the amount of reserves banks hold over the minimum required by the central bank. This is calculated as the actual reserves a bank holds minus the required reserves, hence option C is correct.

Excess Reserves Are Equal To