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A bank has 100 million dollars in deposits and $15 million dollars in reserves. The required reserve ratio is 10%. There is a deposit outflow
A bank has 100 million dollars in deposits and $15 million dollars in reserves. The required reserve ratio is 10%. There is a deposit outflow of $9 million. What is the shortfall in reserves? Answer is -3.10 but i need further explanation how it is -3.10.
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