Reserves
Reserves are funds that a bank keeps on hand and that are not loaned out or invested in bonds.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Reserves. Funds that a bank keeps on hand and that are not loaned out or invested in bonds.
According to Macroeconomics by Mankiw (7th edition),
- Reserves. The money that banks have received from depositors but have not used to make loans.