Exchange Currency

net free reserves

A Federal Reserve statistic that is released weekly to show the amount of surplus (excess cash) reserve owned by a bank. Net free reserve is the opposite of net borrowed reserve, as an increase in the net free reserve will cause a decrease in the net borrowed reserves. It is expressed as a positive number because it indicates a surplus reserve, which results in a better credit environment (lower interest rate and improved ease of obtaining loan).

Related information about net free reserves:
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  8. View - Deep Blue at the University of Michigan
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