Multiple Choice
Excess reserves are
A) checking deposits that are included in the M1 money supply but not the M2.
B) savings deposits that are included in the M2 money supply but not the M1.
C) actual reserves held by banks that exceed the legal requirement.
D) the portion of deposits that banks are required by the Fed to hold as reserves against their deposits.
Correct Answer:
Verified
Correct Answer:
Verified
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