A bank can only make a loan if it has
A) unplanned reserves.
B) a creditworthy customer willing to pay a high interest rate.
C) permission from the Federal Reserve.
D) reserves equal to its deposits.

Question

Quizplus · Accepted Answer

Banks can make loans if they have unplanned (or excess) reserves, which are reserves beyond the required minimum set by the central bank.

A Bank Can Only Make a Loan If It Has