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ABC Bank has the following balance sheet Reserves $20 Chequable deposits $120 Securities $30 Bank Capital $10 Loans $80 The banks desired reserve ratio is

ABC Bank has the following balance sheet

Reserves $20	Chequable deposits $120
Securities $30	Bank Capital $10
Loans $80

The banks desired reserve ratio is 10% and there is a withdrawal of cash from chequable deposits equal to $20. Describe what is likely to happen in the banks balance sheet and produce the new balance sheet for ABC Bank.

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