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You can’t actually know how much a bank can lend from the amount of reserves or the amount of deposits they have - how much they can lend is actually based on t
by stephen_g 8y ago
You can’t actually know how much a bank can lend from the amount of reserves or the amount of deposits they have - how much they can lend is actually based on the amount of capital.
- darawk 8y agoYes you can. How much they can lend is determined by their reserves. How much they will lend is determined by other forces.