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Business, 09.04.2021 03:50 adlaremse2987
a. A single commercial bank can safely lend only an amount equal to its excess reserves, but the commercial banking system as a whole can lend by a multiple of its excess reserves because multiple choice 1one bank gains reserves, but the banking system as a whole loses these reserves. one bank loses reserves to other banks, but the banking system as a whole does not. this is a legal restriction placed on banks, but it does not apply to the banking system as a whole. the banking system as a whole has more funds than any single commercial bank.
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a. A single commercial bank can safely lend only an amount equal to its excess reserves, but the com...
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