If the commercial banking system actually loans the maximum amount it is able to lend:
A. reserves and deposits equal to that amount will be gained.
B. excess reserves will be $2.6 billion.
C. excess reserves will fall to $1.7 billion.
D. excess reserves will be reduced to zero
A. reserves and deposits equal to that amount will be gained.
B. excess reserves will be $2.6 billion.
C. excess reserves will fall to $1.7 billion.
D. excess reserves will be reduced to zero
D.
No excess reserves will be available at the maximum.