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- How many times to you see a chart like this one?
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It looks very odd doesn’t it. So what exactly is this chart measuring?First, we need to understand what are excess reserves. It is the amount of money that commercial banks give to the Fed in excess of required reserves. Normally, banks are required to keep some minimum balances at the Fed, which are understandably called required reserves. Or to put it more simply, excess reserves is the cash that banks give to the Fed for safe keeping when they can’t think of anything else to do with it. …
Original Source: ukhousebubble.blogspot.com
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10 October, 2008| housingblogs |
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