In a 32-bit program an address is a 32-bit value. In a 64-bit program an address is a 64-bit value (although only the low 48 bits are used). In a linear address space, the possible address space is 4GB. One note is that many hardware items are memory mapped to addresses.
However, this will not totally solve the Fedâs problem. Even when it was paying the banks 0.25% interest on reserves, the effective federal funds rate (the rate at which reserves at the Fed were actually being traded) was below 0.25%. This is why the Fed adopted a range for the federal funds rate of 0-0.25%.
Banks are constrained only by the amount of investment capital on deposit at the Fed. Iâll explain in a sec. For instance, if a bank has $100 on deposit, that bank has $100 in reserves. Your deposit is a loan to the bank for $100 and the bank uses your $100 as reserves only. Banks do not lend reserves to other customers! The bank can now lend out about $1000 as others have noted, but a bank could lend out $2000 even though it only has $100 in reserves. The $1000 limit with respect to this question is only the limitation of having to acquire additional reserves to cover the banks reserve requirement.