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Answer the following question: Support your answer. Prepare balance sheets with these given data: Assuming that the central bank only supervises 3 banks, BANK A,B
Answer the following question:
Support your answer.
Prepare balance sheets with these given data: Assuming that the central bank only supervises 3 banks, BANK A,B and C. Company A withdraws 5,000,000 from Bank A and deposits to Bank B and C 2,000,000 and 3,000,000 respectively. Bank A's total NBPS deposit is 5,000,000,000 while Bank B and C are 6,000,000,000 each. Bank A shall loan 5,000,000 worth of Reserves. Bank A shall loan to Bank B, 2,000,000 and 3,000,000 to bank C.
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