7. Bank capital is equal to ________ minus ________.   Question 7 options:   a)  total assets; total reserves   b)  total liabilities; total assets   c)  total liabilities; total borrowings   d)  total assets; total liabilities

Definition Definition Capital reserves held by banks or financial institutions over and above the reserves that are required to be maintained by the regulator toward its liabilities and for internal controls. For commercial banks, excess reserve is the amount over the standard reserve as decided by the central bank. These excess reserve funds are available in the form of cash and cash equivalents.