Definition
Excess reserves are funds held by banks beyond the required minimum.
Why It Matters
They affect lending and the money supply.
Example
A bank holding more cash than required by regulation.
Malone Global University
Malone Global University
Economics Glossary – Malone Global University
Excess reserves are funds held by banks beyond the required minimum.
They affect lending and the money supply.
A bank holding more cash than required by regulation.