Which is the most accurate statement?

A) It is illegal for a bank to hold excess reserves.
B) Most banks try to hold large balances of excess reserves.
C) Required reserves minus actual reserves equals excess reserves.
D) Since January,2008,banks earn 0.25% interest on their reserves.

Since January 2008, the Federal Reserve has paid interest on reserves held by banks, including both required and excess reserves. The specific interest rate has varied over time, but the statement that banks earn interest on their reserves is accurate. The other options are incorrect: it is not illegal for banks to hold excess reserves, banks typically try to minimize excess reserves to maximize profits, and excess reserves are calculated as actual reserves minus required reserves, not the other way around.