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Assume that a bank has checkable deposits of $990, loans of value $813 and reserves at $177.The bank then receives a new deposit of $224.The
Assume that a bank has checkable deposits of $990, loans of value $813 and reserves at $177.The bank then receives a new deposit of $224.The required reserve ratio is 11%.Afterthe new deposit but prior to asset transformation, the bank has excess reserves of _____, and then after asset transformation, so that excess reserves go to zero, the bank's total value of loans is now _____ .
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