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- Required reserves and excess reservesThere are two types of bank reserves: required reserves and excess reserves. The required reserves are the percentage of deposits the institution must have in cash holdings and deposit balances to abide by the regulations of the Federal Reserve. Excess reserves are the amount over the required reserve amount that the institution holds.www.sofi.com/learn/content/what-is-a-bank-reserve/
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Bank Reserves: Definition, Purpose, Types, and Requirements
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