Excess reserves are important to a banker because

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Excess reserves represent the funds that a bank has available to use to acquire income-producing assets such as loans and securities. This is important to bankers because it allows them to earn income on their funds and generate profit for the bank. Maintaining excess reserves is also important for regulatory compliance, but it is not the primary reason for their importance. Profit distribution to the bank's owners is based on overall financial performance, not just excess reserves. Excess reserves may be invested in high-yielding accounts if the bank chooses, but this is not a requirement.

Excess Reserves Are Important to a Banker Because