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7. The money creation processSuppose Southeast Mutual Bank, Walls Fergo Bank, and PJMorton Bank all have zero excess reserves. The required reserve ratio is presently
7. The money creation processSuppose Southeast Mutual Bank, Walls Fergo Bank, and PJMorton Bank all have zero excess reserves. The required reserve ratio is presently set at 10%. Antonio, a Southeast Mutual Bank customer, deposits $500,000 into his checking account at the local branch.
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