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Angus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 9%, and reserves are currently $27 million. Determine

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Angus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 9%, and reserves are currently $27 million. Determine the amount of deposits, the reserve shortage created by a deposit outflow of S5 million, and the cost of the reserve shortage if Angus Bank borrows in the federal funds market assume the federal funds rate is 0.25% . 4

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