Examlex
Match each definition with the correct term below.
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Excess Reserves
The amounts of cash banks hold in reserve over and above the regulatory requirements, which can influence their capacity for lending and overall liquidity in the economy.
Required Reserves
Required Reserves refer to the minimum reserve of cash that banks must hold either in their vaults or on deposit with the central bank, as mandated by financial regulations.
Total Reserves
The sum of a bank's deposits held in the central bank plus its cash on hand, serving as a buffer against potential withdrawals.
Lend Reserves
The practice by financial institutions of providing loans out of their reserves, often influencing the money supply in the economy.
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