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A bank receives $1,000 in new checkable deposit.With a required reserve ratio of 10%, (a) how muchdoes this bank set aside as required reserves? (b)

A bank receives $1,000 in new checkable deposit.With a required reserve ratio of 10%,

(a) how muchdoes this bank set aside as required reserves?

(b) How much can this bank at most lend?

Now assume the $1,000 in new checkable is the result of an open market operation.

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