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Mandolina Mandolina
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7 years ago
Although individual banks must limit their loans to the amount of their excess reserves, the banking system can make loans equal to a multiple of its excess reserves. The basic reason for this difference is that
A) an individual bank can lose reserves and not get them back, but reserves lost from the banking system are restored by the Federal Reserve.
B) the Federal Reserve will provide additional reserves to the banking system but not to individual banks.
C) reserves lost by an individual bank are gained by other banks in the system.
D) individual banks must conform to a higher reserve requirement than that imposed on the banking system.
E) individual banks do not print paper currency, but the banking system does.
Textbook 
Introduction to Economic Reasoning

Introduction to Economic Reasoning


Edition: 8th
Author:
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VilaVila
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Mandolina Author
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7 years ago
Wwow, couldn't thank you enough
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