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An economy has a singular bank (Bank Uno) with a holding of $45 million in money via deposits made by citizens within the economy. .
An economy has a singular bank (Bank Uno) with a holding of $45 million in money via deposits made by citizens within the economy. . Bank Uno decides on a policy of holding 75% reserves. Draw a Taccount balance sheet for the bank. . Bank Uno is required to hold 15% of its existing $45 million as reserves and to loan out the rest. Draw a T-account balance sheet for the bank after it has made its first round of loans. . Assume that Bank Uno is part of a multibank system. How much will the money supply increase with the original loan established in the previous bullet point
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