I need help with this hw Banks can make loans as long as they haveO excess government securities.O required reserves.O deposits.O excess reserves.O reserves. A commercial bank's reserves are equal to the amount ofO the bank's government securities.O the bank's deposits.O the bank's loans.O only the currency in its vault.O currency in the bank's vault plus the balance on its reserve account at a Federal ReserveBank.

In the banking sector, lending is one of the crucial functions of a bank because it provides income…

Answered: Banks can make loans as long as they…

Banks can make loans as long as they have O excess government securities. O required reserves. O deposits. O excess reserves. O reserves.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 4PA

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Question

I need help with this hw

Banks can make loans as long as they have
O excess government securities.
O required reserves.
O deposits.
O excess reserves.
O reserves.

A commercial bank's reserves are equal to the amount of
O the bank's government securities.
O the bank's deposits.
O the bank's loans.
O only the currency in its vault.
O currency in the bank's vault plus the balance on its reserve account at a Federal Reserve
Bank.

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