Final answer:
Deposits formerly ignored in required reserves calculations included the initial tranches on which the Federal Reserve mandated 0% reserves. As of March 2020, all reserve requirements were eliminated, acknowledging no deposits require reserves.
Step-by-step explanation:
Deposits ignored when determining required reserves are typically the initial tranches of deposits that the Federal Reserve does not require banks to hold as reserves. For instance, before March 2020, banks were required to hold 0% reserves on the first $14.5 million of deposits, effectively making this portion of deposits ignored for reserve requirements. Following the onset of the pandemic-induced recession in March 2020, the Federal Reserve reduced the reserve requirements to 0% for all depository institutions, thereby eliminating required reserves across all deposit levels.