At any point in time, a single bank can loan an amount equal to
A)its required reserves.
B)its excess reserves.
C)its total reserves.
D)the amount of loans the bank made in the past.
E)its government securities.

Question

Quizplus · Accepted Answer

A single bank can loan an amount equal to its excess reserves, which are the reserves held by the bank that exceed the required minimum set by the central bank.

At Any Point in Time, a Single Bank Can Loan