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Assets Liabilities Reserves $200 Demand deposits $2,000 Loans $1,800 Assume the required reserve ratio is 5%. Assume no excess reserves. (provide all answers without commas
Assets Liabilities Reserves $200 Demand deposits $2,000 Loans $1,800 Assume the required reserve ratio is 5%. Assume no excess reserves. (provide all answers without commas or decimals) 1. What is the dollar value of new loans that First Valley Bank can still make? 2. Jose deposits $200 of cash in a demand deposit account in this bank. What is the dollar value of new loans this bank can make with that deposit? Is the maximum amount that the 3. What is the value of the money multiplier in this this example? change with this money supply can deposit? 4. Jose deposits $200 of cash in a demand deposit account in this bank. What
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