Editing Bank reserves (section)

== Terms ==
{{confusing|section|date=December 2014}}

*'''Reserves on deposit''' (of a commercial bank): the deposit accounts for the commercial bank at the central bank.<ref>See, e.g., U.S. Federal Reserve System regulation at 12 C.F.R. section 204.5(a)(1)(i).</ref>
*'''Vault [[cash]]''' (of a commercial bank): paper currency and current coins owned by the commercial bank and (generally) held in the bank vaults of the commercial bank.<ref>See, e.g., U.S. Federal Reserve System regulations at 12 C.F.R. section 204.5(a)(1) and 12 C.F.R. section 204.2.</ref>
*'''Borrowed reserves''': bank reserves that were obtained by borrowing from the central bank.
*'''Non-borrowed reserves''': bank reserves that were not obtained by borrowing from the central bank.
*'''Required reserves''': the amount of reserves (reserves on deposit plus vault cash) that commercial banks are required to hold, as determined by the central bank as a function of the commercial bank's deposit liabilities.<ref>See, e.g., U.S. Federal Reserve System regulation at 12 C.F.R. section 204.4.</ref>
*'''[[Excess reserves]]''':  bank reserves in excess of the [[reserve requirement]]. A portion of excess reserves (or even all of them) may be '''desired reserves'''.
*'''Free reserves''': the amount by which excess reserves exceed borrowed reserves.<ref>Vogel 2001:421.</ref>
*'''Total reserves''': all bank reserves, i.e. cash in the vault, plus reserves on deposit at the central bank, also borrowed plus non-borrowed, also required plus excess.