Examlex
Write a brief explanation of reliability and validity to demonstrate that you understand the difference between the two.
Actual Reserves
The total funds a bank has in its vault or deposited with the central bank, available for immediate use.
Required Reserves
Required reserves refer to the minimum amount of funds that a bank must hold in reserve against deposits, as mandated by central banking regulations to ensure bank liquidity.
Excess Reserves
The reserves that banks hold over and above the regulatory requirements set by the central bank or banking regulator.
Excess Reserves
Banking reserves exceeding the reserve requirement set by a central bank, not lent out to the bank's clients.
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