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4 December, 07:06

A. how much is the bank required to hold as reserves given its deposits of $8,000?

b. how much are its excess reserves?

c. by how much can the bank increase its loans?

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  1. 4 December, 08:16
    0
    A bank has excess reserves of $400,000 and makes a new loan for $50,000. If the bank faces a 25% required reserve ratio, by how much will the money supply increase when the loan is made? $200,000
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