A financial depository institution can make new loans up to the value of its:
A) deposits.
B) actual reserves.
C) excess reserves.
D) required reserves.

Name: A financial depository institution can make new loans up to the value of its: A) deposits. B) actual reserves. C) excess reserves. D) required reserves.
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Question

Quizplus · Accepted Answer

Financial depository institutions can make new loans up to the value of their excess reserves, which are the reserves they hold over the minimum required by regulation.

A Financial Depository Institution Can Make New Loans Up to the Value