Use the following to answer questions :
-(Scenario: Monetary Base and Money Supply) Look at the scenario Monetary Base and Money Supply. How much are excess reserves?

Question

Use the following to answer questions : 
-(Scenario: Monetary Base and Money Supply) Look at the scenario Monetary Base and Money Supply. How much are excess reserves?

Quizplus · Accepted Answer

Excess reserves are calculated as the difference between the total reserves and required reserves. In this scenario, total reserves are given as $350 billion and required reserves are given as $250 billion. Therefore, excess reserves would be $100 billion.

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