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A bank has deposits of $1,000,000,000 and $70,000,000 held in reserves at the Federal Reserve. I. Its reserve ratio is 7% II. Can make loans
A bank has deposits of $1,000,000,000 and $70,000,000 held in reserves at the Federal Reserve. I. Its reserve ratio is 7% II. Can make loans up to $930,000,000 III. Will have to change the amount in reserve if the Federal Funds Rate changes a. I, II, and III b. III only C. I and II d. II and III e. I only
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