Question

__________________ are reserves held in legal form which are greater than required reserves and can be loaned out..

Answer 1

Excessive reserves

Step-by-step explanation:

Excessive reserves are the amount of reserve bank that is in excess and held by the central bank of states.

The excessive reserve can be determined by using the given relation

excessive reserve = actual reserve - required reserve

All the commercial banks under the federal bank can lend excessive reserves to increase the money supply.

Answer 2

The answer is Excess Reserves

Explanation: Excess Reserves are reserves held in legal form which are greater than required reserves and can be loaned out..