As discussed in the text, a bank can extend new loans equal to the amount by which its excess reserves increase.
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Q217: Excess reserves equal total reserves plus required
Q231: An open-market purchase by the Federal Reserve
Q232: In a system in which all banks
Q233: The required reserve ratio is required reserves
Q235: The required reserve ratio is the percentage
Q237: Banks do not create money when they
Q238: In a simplified banking system, the money
Q239: A decrease in the required reserve ratio
Q240: If the Federal Reserve wishes to increase
Q241: The market in which banks make loans
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