Which statement is true?

A) Actual reserves - required reserves = excess reserves.
B) Required reserves - actual reserves = excess reserves.
C) Required reserves + actual reserves = excess reserves.
D) None of the statements are true.

This is the correct equation for calculating excess reserves in a bank's balance sheet. Actual reserves refer to the amount of money that a bank holds in its reserves, which is mandated by the Federal Reserve. Required reserves are the minimum amount that the bank is required to hold, and excess reserves are the difference between the two. Therefore, the equation is: Excess reserves = Actual reserves - Required reserves.