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Assume that Bank Z is the only commercial bank in the country with zero excess reserve and its legal cash requirement is 12%. Suppose that
Assume that Bank Z is the only commercial bank in the country with zero excess reserve and its legal cash requirement is 12%. Suppose that a customer, Mr. G, deposits RM 5000 in the bank of Bank Z.
Based on the information given:
a) Construct a balance sheet for Bank Z. | (4 Marks) |
b) Calculate the total deposits. | (2 Marks) |
c) Calculate the total reserves. | (2 Marks) |
d) Calculate the total loans created. | (2 Marks) |
PLEASED HELP ME TO GET THROUGH IT WITH DETAILED EXPLANATION.
BAFB 1023 Macroeconomics
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