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16. Consider a bank which has checking deposits of $300 million, saving deposits of $900 million, reserves are 8% of total deposits, deposits or reserve

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16. Consider a bank which has checking deposits of $300 million, saving deposits of $900 million, reserves are 8% of total deposits, deposits or reserve in the central bank (FED) $30 million and loans are $800 million. There is no other liabilities in liabilities side and the bank do not keep excess reserve (ER=0). a. How much are the total assets of the bank? b. How much are the "all other assets" of the bank? c. How much is the currency (notes and coins) in the vault? d. How much is the required) reserve ratio of the bank? e. How much is the deposit (expansion) multiplier of the bank? Now suppose people deposit $500 in currency in their checking accounts. f. As a direct result of people's deposit, the banks will create new money equal to g. As a direct result of people's deposit, the banks will create new loan equal to h, How much is the change in reserve? i. In the final balance sheet, deposit is and loan is j. Eventually, money supply increases by

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