Questions and Answers
What are reserves for the banks and the Fed, respectively?
Assets for the banks, liabilities for the Fed
What is the term for the additional reserves that banks choose to hold?
Excess reserves
What does the Fed do when it takes actions to increase reserves?
Increases liquidity in the banking system
What is the term for the deposits that the Fed requires banks to hold as reserves?
Signup and view all the answers
What is the term for the currency physically held by banks?
Signup and view all the answers
