The difference between actual reserves and required reserves is

Question

Quizplus · Accepted Answer

Actual reserves refer to the total amount of funds that a bank has in its reserves. Required reserves refer to the minimum amount of funds that a bank is required by law to hold in its reserves. The difference between actual reserves and required reserves is referred to as excess reserves, which can be used by the bank for lending or other investments. Therefore, option B is the correct answer.

The Difference Between Actual Reserves and Required Reserves Is