-In the balance sheet for the FBN bank above, the entries are in millions of dollars.. After FBN Bank loans the maximum amount it can, the loans have been spent, and the proceeds have been deposited in other banks, FBN Bank has excess reserves of

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Excess reserves are the amount of reserves a bank has beyond the required reserves. When a bank loans out the maximum amount it can, and the proceeds are deposited in other banks, it means all available funds that could be loaned out have been, leaving the bank with no excess reserves.

-In the Balance Sheet for the FBN Bank Above, the Entries