Excess reserves:
A) equal actual reserves minus required reserves.
B) determine the value of new loans that can be made by a depository institution.
C) are actual reserves over and above the amount a depository institution is required to hold as actual reserves.
D) are all of the above.

Question

Quizplus · Accepted Answer

Excess reserves are indeed the actual reserves minus required reserves, determine the value of new loans that can be made by a depository institution, and are actual reserves over and above the amount a depository institution is required to hold as actual reserves.

Excess Reserves