Answer: Banks would be able to loan more money.
Explanation:
The Fed does indeed do this and it is called the Reserve Requirement. It is a percentage of deposits that banks are to keep with the Fed and it has the effect of reducing the amount of money that banks have available to loan out to entities.
The Fed sets the percentage that the banks are to keep with it and this enables them to use it as a tool to control money supply because they could increase or decrease it depending on how much they want banks to lend out.
Here is just an example:
How gracious of you to accept my apology, after losing the bag that contained the present.
I Haven’t seen you for a long time
Beowulf uses no weapons to kill Grendel.
