yes, excess reserve is what the bank has that isn't required reserves. Excess reserves can turn into loans, but they can also just be extra money the bank has that they don't loan out
So if somebody that put in a demand deposit were to withdraw money from the account, would this money be taken from the excess reserves or required reserves?
Brilliant channel, keep up the good work.
Thank you so much for the support!
This is incredible! Really helping with my understanding of Macroeconomics!
Wow your students are so lucky😭However can you please explain opportunity cost in the next video
Thank you. Very helpful.
Keep up the good work!!
So there is a different between excess reserved and loan??
yes, excess reserve is what the bank has that isn't required reserves. Excess reserves can turn into loans, but they can also just be extra money the bank has that they don't loan out
So if somebody that put in a demand deposit were to withdraw money from the account, would this money be taken from the excess reserves or required reserves?
What about the impact of electronic money on money multiplier??
What about electronic money this day, are they related to money supply??
simplified ! great
You can at least put those calculations in writing form