Examlex
Fill in the correct labels for the following figure using the word bank below.
-D ________
Excess Reserves
The amount of reserves that a bank holds beyond the required minimum, which can potentially be lent out to create new money.
Excess Reserves
The funds that banks hold over and above the required reserve ratio set by the central bank, which can be loaned out or invested.
Required Reserves
The portion of depositors' balances that banks must have on hand as cash or in reserves at a central bank, used as a measure to ensure liquidity.
Excess Reserves
Banks' reserves held at the central bank over and above the required minimum, which can influence the banks' ability to lend and thus affect the money supply.
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