The difference between actual reserves and required reserves is
A) unplanned reserves.
B) excess reserves.
C) illegal reserves.
D) desired reserves.

Question

Quizplus · Accepted Answer

Excess reserves are the funds that a bank holds beyond the required minimum (required reserves). They represent additional liquidity that the bank can lend out or invest, hence the difference between actual reserves and required reserves.

The Difference Between Actual Reserves and Required Reserves Is