Excess Reserves Calculator
Excess Reserves Calculator
Component | Description |
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Total Reserves | The total amount of reserves held by a bank. |
Required Reserves | The minimum amount of reserves a bank is required to hold by regulation. |
Excess Reserves | The amount of reserves held by a bank that exceeds the required reserves. |
Formula | Excess Reserves = Total Reserves – Required Reserves |
Purpose | Used to measure the liquidity and financial health of a bank. |