The quantity of reserves supplied equals
A)nonborrowed reserves minus borrowed reserves.
B)nonborrowed reserves plus borrowed reserves.
C)required reserves plus borrowed reserves.
D)total reserves minus required reserves.

Question

Quizplus · Accepted Answer

The quantity of reserves supplied in a banking system equals nonborrowed reserves plus borrowed reserves. Nonborrowed reserves are those provided by the central bank's monetary policy operations, while borrowed reserves are those banks borrow from the central bank or other sources.

The Quantity of Reserves Supplied Equals