An individual bank can safely lend out a multiple of its excess reserves, but the banking system can safely lend out only an amount equal to the excess reserves in the banking system.
(a) true
(b) false

"An individual bank can safely lend out a multiple of its excess reserves, but the banking system can safely lend out only an amount equal to the excess reserves in the banking system."

Is (B) FALSE.

Explanation: The correct statement is "An individual bank can safely lend out only an amount equal to its excess reserves but the banking system can safely lend out a multiple of its excess reserves."

answer; post closing trial balance;

answer; at prices that violate government price regulations;