Excess reserves are:
A) Bank reserves in excess of required reserves.
B) Legal reserves in excess of lending reserves.
C) Transactions deposits plus traveler's checks.
D) Total reserves plus deficient reserves.

Question

Quizplus · Accepted Answer

Excess reserves refer to bank reserves that are held in excess of required reserves. Required reserves are the minimum amount of reserves that banks are required to hold by law. By holding excess reserves, banks can increase their ability to lend and generate income.

Excess Reserves Are