A financial depository institution can make new loans up to an amount equal to its:
A) actual reserves.
B) excess reserves.
C) required reserves.
D) deposits.

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

Quizplus · Accepted Answer

Excess reserves are the amount of reserves a financial depository institution has over and above the required reserves. These excess reserves can be used to make new loans.

A Financial Depository Institution Can Make New Loans Up to an Amount