Excess reserves

From CNM Wiki
Revision as of 14:55, 2 July 2020 by Kainat9 (talk | contribs)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

Excess reserves are reserves that banks hold above the legally mandated limit.

Definition

According to Principles of Economics by Timothy Taylor (3rd edition),

Excess reserves. Reserves that banks hold above the legally mandated limit.

According to Macroeconomics by Mankiw (7th edition),

Excess reserves. Reserves held by banks above the amount mandated by reserve requirements.