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Excess reserves

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Definition of Excess reserves

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Excess reserves

Any excess of actual reserves above required reserves.


Excess Reserves

reserves of commercial banks in excess of those they are legally required to hold.



Related Terms:

Federal funds

Non-interest bearing deposits held in reserve for depository institutions at their district Federal
Reserve Bank. Also, excess reserves lent by banks to each other.


Federal funds market

The market where banks can borrow or lend reserves, allowing banks temporarily
short of their required reserves to borrow reserves from banks that have excess reserves.


Federal funds rate

This is the interest rate that banks with excess reserves at a Federal Reserve district bank
charge other banks that need overnight loans. The Fed Funds rate, as it is called, often points to the direction
of U.S. interest rates.


Free reserves

excess reserves minus member bank borrowings at the Fed.



Reserves

Commercial banks' reserves consist of their holdings of cash and their balances in deposits with the central bank. See also foreign exchange reserves, excess reserves, required reserves, reserve requirement.


Excess return on the market portfolio

The difference between the return on the market portfolio and the
riskless rate.


Excess Reserves Image 2

Excess returns

Also called abnormal returns, returns in excess of those required by some asset pricing model.


Official reserves

Holdings of gold and foreign currencies by official monetary institutions.


Required reserves

The dollar amounts based on reserve ratios that banks are required to keep on deposit at a Federal Reserve Bank.


CAPITAL IN EXCESS OF PAR VALUE

What a company collected when it sold stock for more than the par value per share.


Capital in excess par

Amounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with additional paid-in capital.


Excess Capacity

Unused production capacity.


Excess Demand

A situation in which demand exceeds supply.


Excess Supply

A situation in which supply exceeds demand.


Foreign Exchange Reserves

A fund containing the central bank's holdings of foreign currency or claims thereon.


International Reserves

See foreign exchange reserves.


Required Reserves

reserves that the central bank requires commercial banks to hold.



Cookie Jar Reserves

An overly aggressive accrual of operating expenses and the creation of
liability accounts done in an effort to reduce future-year operating expenses.


Cost Plus Estimated Earnings in Excess of Billings

Revenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts
receivable.



 

 

 

 

 

 

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