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25 May, 21:43

An individual bank can safely lend out a multiple of its excess reserves, but the banking system can safely lend out only an amount equal to the excess reserves in the banking system.

(A) True

(B) False

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Answers (1)
  1. 25 May, 23:04
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    Answer: "An individual bank can safely lend out a multiple of its excess reserves, but the banking system can safely lend out only an amount equal to the excess reserves in the banking system."

    Is (B) FALSE.

    Explanation: The correct statement is "An individual bank can safely lend out only an amount equal to its excess reserves but the banking system can safely lend out a multiple of its excess reserves."
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Home » Business » An individual bank can safely lend out a multiple of its excess reserves, but the banking system can safely lend out only an amount equal to the excess reserves in the banking system. (A) True (B) False
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