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Excess reserves are reserves held above what is required by the reserve ratio.

The reserve ratio determines the interest rate that customers receive for depositing money in a bank.

The primary reason why the Bank of Canada requires commercial banks to keep a specified amount of reserves is to decrease bank leverages.

In Canada, the reserve ratio is set by provincial governments.

Excess reserves $=$ actual reserves $-$ required reserves

Reserve ratio $=$ required reserves$/$deDosits

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