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LeoGlossary: Excess Reserve

How to get a Hive Account


Excess reserves are bank reserves that are held in excess of the reserve requirement set down by the central bank. In this United States, this is the Federal Reserve.

Bank reserves are considered any cash holding by a bank along with any credit balance held with a Federal Reserve Bank.

Reserves can be lent out to other banks that might be under their reserve requirement. The are very short-term loans, usually overnight.

General:

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