Excess reserves are equal to: a. required reserves minus loans. b. demand deposits multiplied by required reserves. c. demand deposits minus loans. d. demand deposits minus required reserves. e. demand deposits plus required reserves.

Excess reserves are equal to: a. required reserves minus loans. b. demand deposits multiplied by required reserves. c. demand deposits minus loans. d. demand deposits minus required reserves. e. demand deposits plus required reserves.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter14: Banking And The Money Supply

Section: Chapter Questions

Problem 2.3P

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46

Excess reserves are equal to:

	a.	required reserves minus loans.
	b.	demand deposits multiplied by required reserves.
	c.	demand deposits minus loans.
	d.	demand deposits minus required reserves.
	e.	demand deposits plus required reserves.

Definition Definition Minimum amount that a commercial bank must hold in liquid assets in order to fulfill central bank regulations.

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