4 Finally, Bank C holds all of its increase in liquidity as reserves (required re serves plus excess reserves) Hence the deposit creation process stops here The following balance sheet records the changes in compositions of assets and liabilities for each market participants Fill the numbers in a i Fed Assets Liabilities Securities $100 million Currency Reserves $ million Liabilities Bank A Assets Securities $100 million Required reserves $ a million Excess reserves $b million Loans $50 million Borrower A Assets Currency Deposits Liabilities $ c million Borrowing $50 million $ d million Bank B Assets Liabilities Required reserves $ e million Deposits $ d million Excess reserves $ f million Loans g million Borrower B Assets Currency Deposit Liabilitie Sh million Borrowing $ g million $ i million Bank C Assets Liabilities Reserves $ 1 million Deposits $ i million 4 Finally, Bank C holds all of its increase in liquidity as reserves (required re serves plus excess reserves) Hence the deposit creation process stops here The following balance sheet records the changes in compositions of assets and liabilities for each market participants Fill the numbers in a i Fed Assets Liabilities Securities $100 million Currency Reserves $ million Liabilities Bank A Assets Securities $100 million Required reserves $ a million Excess reserves $b million Loans $50 million Borrower A Assets Currency Deposits Liabilities $ c million Borrowing $50 million $ d million Bank B Assets Liabilities Required reserves $ e million Deposits $ d million Excess reserves $ f million Loans g million Borrower B Assets Currency Deposit Liabilitie Sh million Borrowing $ g million $ i million Bank C Assets Liabilities Reserves $ 1 million Deposits $ i million

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4  Finally, Bank C holds all of its increase in liquidity as reserves (required re  serves plus excess reserves)  Hence the deposit creation process stops here  The following balance sheet records the changes in compositions of assets and liabilities for each market participants  Fill the numbers in a i  Fed Assets Liabilities Securities  $100 million Currency  Reserves  $     million Liabilities Bank A Assets Securities  $100 million Required reserves  $ a million Excess reserves  $b million Loans   $50 million Borrower A Assets Currency Deposits Liabilities  $ c million Borrowing  $50 million  $ d million Bank B Assets Liabilities Required reserves  $ e million Deposits  $ d million Excess reserves  $ f million Loans   g million Borrower B Assets Currency Deposit Liabilitie  Sh million Borrowing  $ g million  $ i million Bank C Assets Liabilities Reserves  $ 1 million Deposits  $ i million 4  Finally, Bank C holds all of its increase in liquidity as reserves (required re  serves plus excess reserves)  Hence the deposit creation process stops here  The following balance sheet records the changes in compositions of assets and liabilities for each market participants  Fill the numbers in a i  Fed Assets Liabilities Securities  $100 million Currency  Reserves  $     million Liabilities Bank A Assets Securities  $100 million Required reserves  $ a million Excess reserves  $b million Loans   $50 million Borrower A Assets Currency Deposits Liabilities  $ c million Borrowing  $50 million  $ d million Bank B Assets Liabilities Required reserves  $ e million Deposits  $ d million Excess reserves  $ f million Loans   g million Borrower B Assets Currency Deposit Liabilitie  Sh million Borrowing  $ g million  $ i million Bank C Assets Liabilities Reserves  $ 1 million Deposits  $ i million

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4. Finally, Bank C holds all of its increase in liquidity as reserves (required re- serves plus excess reserves). Hence the deposit creation process stops

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