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.

---

Definitions:

Intrinsic Rewards

Rewards that are internally motivated, such as personal satisfaction or joy from performing a task.

Pleasure

A feeling of happiness or satisfaction derived from experiencing something enjoyable or satisfying.

Garcia Effect

A phenomenon in which an aversion or distaste for a particular taste or smell is acquired after sickness or nausea is associated with that specific taste or smell.

Conditioned Aversions

A learned aversion to a substance or activity after it has been associated with an unpleasant or harmful stimulus.