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3. A bank has $30,000 in reserves, $100,000 in bank loans, and $150,000 of deposits. If the reserve requirement is 10%, what is the banks
3. A bank has $30,000 in reserves, $100,000 in bank loans, and $150,000 of deposits. If the reserve requirement is 10%, what is the banks reserve position? What is the maximum dollar amount of loans the bank could make? What would happen to the nations money supply if the Fed lowered the reserve requirement to 8 percent? Demonstrate your results with a numerical example.
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