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18. Suppose the simplied balance sheet shown below is for the entire banking system. Bank Balance Sheet Ms Lam -- on Tom If the desired

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18. Suppose the simplied balance sheet shown below is for the entire banking system. Bank Balance Sheet Ms Lam -- on Tom If the desired reserve ratio is 15 percent, how much in excess reserves does the banking system have? If the banking system was to loan out those excess reserves, what is the potential expansion in demand deposits? Redesign the above balance sheet to show how it would look after this amount has been loaned

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