Reserves held beyond the required amount are called _____________ reserves.Group of answer choicesdemand depositsprecautionaryexcesssurplus

Understanding the Question

The question is asking for the term that describes reserves held by banks that exceed the required amounts.

Analyzing the Choices

1. Demand Deposits: This refers to deposits that can be withdrawn on demand, but it does not describe excess reserves.
2. Precautionary Reserves: These are reserves held to cover unexpected situations, not necessarily beyond what is required.
3. Excess Reserves: This term specifically refers to reserves that are above the required minimum.
4. Surplus Reserves: Similar to excess reserves, it suggests a quantity that is additional but is not the standard term used in banking context.

Conclusion

The correct term for reserves held beyond the required amount is excess reserves.