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What is the difference between total reserves, required reserves, and excess reserves? Answer: Total reserves include the bank's required reserves and excess reserves. Required reserves
What is the difference between total reserves, required reserves, and excess reserves?
Answer:
Total reserves include the bank's required reserves and excess reserves.
Required reserves are the reserves banks have to hold against their deposits, given by _____________ multiplied by the reserve ratio.
Excess reserves are the reserves in excess of required reserves, given by total reserves minus required reserves.
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