[Solved] The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called -

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Q.	The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called -
A.	Cash reserves
B.	Deposit reserves
C.	Excess reserves
D.	Momentary reserves
Answer» C. Excess reserves
Explanation: In banking, excess reserves are bank reserves in excess of the reserve requirement set by a central bank. They are reserves of cash more than the required amounts. Holding excess reserves has an opportunity cost if higher risk-adjusted interest can be earned by putting the funds elsewhere; the advantage of holding some funds in excess reserves is that doing so may provide enhanced liquidity and therefore more smooth operation of payment system.

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