Answer :
Reserves refer to the cash banks have on hand to satisfy the federal reserve requirements. Excess reserves refer to the amount of reserves that banks have an excess of the legally required reserves.
Reserves are the funds banks keep on hand to meet the demands of customers and reserve requirements of the fed. These funds are kept at the bank and the vault or on deposit at the fed.
Excess reserves or reserves in excess of the required reserves that the bank is required by law to hold. Banks will usually loan out these excess reserves, which can lead to an increase in the money supply.
Reserves are the funds banks keep on hand to meet the demands of customers and reserve requirements of the fed. These funds are kept at the bank and the vault or on deposit at the fed.
Excess reserves or reserves in excess of the required reserves that the bank is required by law to hold. Banks will usually loan out these excess reserves, which can lead to an increase in the money supply.