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ASSETS TOTAL RESERVES 120500 LIABILITIES AND NET WORTH DEMAND DEPOSITS $600,000 REQUIRED RESERVES 120000 EXCESS RESERVES LOANS 0 $480,000 NET WORTH $0 TOTAL LIABILITIES +

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ASSETS TOTAL RESERVES 120500 LIABILITIES AND NET WORTH DEMAND DEPOSITS $600,000 REQUIRED RESERVES 120000 EXCESS RESERVES LOANS 0 $480,000 NET WORTH $0 TOTAL LIABILITIES + NEW WORTH $600,000 TOTAL ASSETS $600,000 C. IF THE BANK RECEIVED AN ADDITIONAL DEPOSIT OF $100,000, USE THE BALANCE SHEET BELOW ILLUSTRATING THE CHANGES CREATED. ASSETS TOTAL RESERVES REQUIRED RESERVES LIABILITIES AND NET WORTH DEMAND DEPOSITS EXCESS RESERVES LOANS NET WORTH $0 TOTAL LIABILITIES + NET WORTH TOTAL ASSETS D. REFERRING TO THE BALANCE SHEET IN PART C, WHAT WOULD BE THE MAXIMUM AMOUNT OF NEW LOANS THIS BANK COULD MAKE? E. WHAT WOULD THE MULTIPLIER BE? IF ALL BANKS IN THE SYSTEM WERE IDENTICAL TO THE ONE SHOWN ABOVE, HOW MUCH CAN THE MONEY SUPPLY POTENTIALLY GROW BY

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