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The joint probabilities shown in a table with two rows, and
and two columns,
and
,are as follows: P(
and
) = .10,P(
and
) = .30,P(
and
) = .05,and P(
and
) = .55.Then P(
|
) ,calculated up to two decimals,is
Excess Reserves
The reserves held by banks over and above the legal reserve requirement set by the central bank or regulatory authority.
Actual Reserves
The total amount of funds or commodities a bank holds at a given time, including both required and excess reserves.
Required Reserves
The minimum amount of funds that a bank is required to hold in reserve against deposits made by customers, as mandated by regulatory authorities.
Required Reserve Ratio
The fraction of deposits that banks are required to keep on hand as reserves, either in cash or as deposits with a central bank.
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