The part of a bank's reserves that are larger than desired are called
A) required reserves.
B) non-required reserves.
C) excess reserves.
D) additional reserves.
E) unnecessary reserves.

Question

Quizplus · Accepted Answer

Excess reserves are the portion of a bank's reserves that exceed the required reserves. Banks hold these reserves in addition to what is required by regulation to manage liquidity and credit risks.

The Part of a Bank's Reserves That Are Larger Than