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1. The required reserve ratio (rr) is 10%. The excess reserve ratio (e) is 5%. The currency ratio (c) is 10%. Suppose the central bank

1. The required reserve ratio (rr) is 10%. The excess reserve ratio (e) is 5%. The currency ratio (c) is 10%. Suppose the central bank buys $200 securities from the commercial bank. How will it affect the balance sheet of the central banks, the banks, and the public? Fill in the blanks on the balance sheets with numbers in the table right below. 12345678910 Central Bank assets liabilities Securities + (1) Reserves Public assets Deposits + (2) Currency in circulation + (3) liabilities (4) Loans + (5) Currency in circulation +(6) Banks (Banking System) assets liabilities Securities (7) Deposits +(8) Reserves +(9) Loans +

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