What is the maximum capacity of the 16 bit memory?

The maximum capacity of a 16-bit memory is 2^16 bits, which equals 65,536 bits. When converted to bytes, this is 65,536 bits divided by 8 bits per byte, resulting in 8,192 bytes or 8 kilobytes (KB). Thus, a 16-bit memory can store a maximum of 8 KB of data.