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(10 Points) Use the following T-account for the question. This bank has a required reserve ratio of 0.15 and is holding zero excess reserve. (a)

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(10 Points) Use the following T-account for the question. This bank has a required reserve ratio of 0.15 and is holding zero excess reserve. (a) Solve x1,x2 and x3 (b) Now, Evian deposit $100 into the bank. Calculate the initial required reserve and excess reserves (c) After the bank convert all of the excess reserves into loans. How much reserves, deposits and loans should the bank have? (d) How much has this transaction increase the money supply in the long run if all the other bank has the same required reserve ratio? Explain in word how this process work

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