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To: Toddsterpatriot

Excess reserves are when banks choose to hold greater reserves than the law requires. In other words, if the law said ABC Bank had to hold 3% of their depositors $100M in reserve, legally they are only required to hold $3M in reserve. If they choose to hold $5M in reserve, that is excess reserves.

What praytell do you think QE is if not lending to banks?


16 posted on 03/25/2015 9:38:26 PM PDT by RainMan (Liberals are first and foremost, jealous little losers who resent anyone who has anything they dont)
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To: RainMan

QE is the Fed buying, not the Fed lending.


17 posted on 03/25/2015 10:02:16 PM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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