Excess Reserves Are

question 142

Multiple Choice

Excess reserves are

• A) checking deposits that are included in the M1 money supply but not the M2.
• B) savings deposits that are included in the M2 money supply but not the M1.
• C) actual reserves held by banks that exceed the legal requirement.
• D) the portion of deposits that banks are required by the Fed to hold as reserves against their deposits.

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