3 years ago

A single commercial bank in a multibank banking system can lend only an amount equal to its initial preloan __________.

Social Studies

1 answer:

mrs_skeptik [129]3 years ago

7 0

Answer:

excess reserves

Explanation:

According to my research on loan requirements, I can say that based on the information provided within the question it can lend only an amount equal to its initial preloan excess reserves. These are an extra amount of bank reserves that are kept as a backup for certain scenarios. There is a pre-set limit on how much excess reserves a bank must have and this limit is set by the central bank.

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