In an attempt to bring lenders and borrowers together following the financial crisis of 2008,the Federal Reserve made a large amount of new funds available to financial markets.Any of these new funds that are loaned out by banks would be classified as ________ of the banks.

Question

Quizplus · Accepted Answer

Any funds that banks lend out from the new funds made available by the Federal Reserve would be classified as excess reserves. Required reserves are the minimum amount of funds that banks must hold in reserve, deposits are funds held by customers at the bank, and liabilities are financial obligations owed by the bank, such as loans or bonds that it has issued.

In an Attempt to Bring Lenders and Borrowers Together Following