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Economics glossary · Policy and the financial sector

Bank reserves

What bank reserves means in economics, as one of what the two measures count, with an example and a question to test yourself.

Definition
Bank reserves
Bank reserves are the balances commercial banks hold in their own accounts at the central bank, and they count in narrow money only.
Example

Can you think of an example of bank reserves?

Test yourself

Can you name the four kinds of asset that make up narrow and broad money?

Learn it properly: the module

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