When a bank accepts additional deposits, its required reserves and excess reserves will both increase.

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When a bank accepts additional deposits, it is required to hold a certain percentage of those deposits as reserves in order to meet regulatory requirements. These reserves can be either required reserves (the minimum amount that a bank must hold by law) or excess reserves (amounts held above the required reserve amount). Therefore, both required reserves and excess reserves will increase when a bank accepts additional deposits.

When a Bank Accepts Additional Deposits, Its Required Reserves and Excess