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Please briefly explain the situation when a bank is "fully loaned up".

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The reserve requirement on deposits ensures that (for a given $reserve\ requirement(\%)$ and $deposits(\$)$): $$loans(\$) \leq deposits(\$) \cdot (1 - reserve\ requirement(\%))$$ Fully loaned up means that this holds with equality: $$ loans(\$) = deposits(\$) \cdot (1 - reserve\ requirement(\%)) $$

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