Answer:
The correct answer is letter "D": difference between actual reserves and required reserves.
Explanation:
The U.S. Federal Reserve (Fed) establishes commercial banks must have a reserve which is a minimum amount of cash in proportion to the loans individuals can request from banks. In the U.S., the minimum reserve ratio is 10%.
Excess reserves represent the reserves commercial institutions have on top of the minimum reserve established by the Fed. Banks tend to have low excess reserves since that money does not generate interest, either profit.
