Excess Reserves Are Equal to

question 149

Multiple Choice

Excess reserves are equal to

• A)total reserves minus discount loans.
• B)vault cash plus deposits with Federal Reserve banks minus required reserves.
• C)vault cash minus required reserves.
• D)deposits with the Fed minus vault cash plus required reserves.

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Definitions:

Common Stock

Equity instruments that grant the owner the right to receive dividends, which can fluctuate in value and are not guaranteed, reflecting the company's performance.

Par Common Stock

Common stock issued with a nominal or face value, used primarily for accounting purposes and often set at a low amount.

Treasury Stock

Stocks that the issuing company originally sold and then bought back, lowering the total number of shares available for trade on the market.

Fair Market

The price that an asset would sell for on the open market, under all conditions requisite to a fair sale.