When evaluating frequency selectivity, it is difficult to determine if the deviation from normal performance observed for hearing-impaired listeners reflects abnormal cochlear function or normal, level-dependent changes in frequency selectivity. This experiment was designed to investigate the dependence of frequency-selectivity measures on threshold and signal level. Auditory-filter characteristics, critical ratios, forward-masked psychophysical tuning curves, and narrowband-noise masking patterns were obtained from normal-hearing listeners in quite and in the presence of broadband noise at five levels. These findings were then compared to previously obtained frequency-selectivity measurements for subjects with mild-to-moderate sensorineural hearing loss whose absolute thresholds are comparable to the normal-hearing listeners' masked thresholds. The results suggest that frequency selectivity deterioriates as threshold increases for all subjects. However, the poor frequency selectivity exhibited by hearing-impaired listeners may not be explained entirely by the effects of threshold and signal level. Nevertheless, because frequency selectivity is poorer in the normal auditory system at higher stimulus levels, the deviation from normal performance observed for hearing-impaired listeners may not be as large as previously suggested.