How do i find the excess reserves?

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1253722

2026-04-28 17:45

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To find excess reserves, first determine a bank's total reserves, which includes both required reserves and any additional reserves held. Then, identify the required reserves, calculated as a percentage of the bank's deposits based on regulatory requirements. Subtract the required reserves from the total reserves; the remaining amount is the excess reserves. Formulaically, it can be expressed as: Excess Reserves = Total Reserves - Required Reserves.

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