The ability of the banking system to make loans depends on excess reserves and the reserve requirement.
Banks can lend up to the required minimum level of reserves set by the Fed.

Name: The ability of the banking system to make loans depends on excess reserves and the reserve requirement. Banks can lend up to the required minimum level of reserves set by the Fed.
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Quizplus · Accepted Answer

Banks can lend up to the required minimum level of reserves set by the Fed.

The Ability of the Banking System to Make Loans Depends