Can banks loan out excess reserves?
What can banks do with excess reserves?
Why do banks lend out all excess reserves?
What happens when excess reserves are loaned out?
Do banks need reserves to lend?
When banks hold excess reserves because they don’t see good lending opportunity?
Are excess reserves assets or liabilities?
What is the maximum amount a bank can lend?
How are bank reserves destroyed?
“Just as taking out a new loan creates money, the repayment of bank loans destroys money. … Each purchase made using the credit card will have increased the outstanding loans on the consumer’s balance sheet and the deposits on the supermarket’s balance sheet. …