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

Question

Quizplus · Accepted Answer

A single bank can loan an amount equal to its excess reserves, which are the reserves above the required minimum that the bank must hold.

At Any Point in Time,a Single Bank Can Loan an Amount