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Assume that no banks hold excess reserves, the public holids no currency, and reserve requirements are 10%. If Bank A sells a SIMM security to

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Assume that no banks hold excess reserves, the public holids no currency, and reserve requirements are 10%. If Bank A sells a SIMM security to the Fed, use T accounts to show what happens: a. to Bank A's balance sheet right after the transaction with the Fed to Bank A's balance sheet, assuming it lends the full amount of additional reserves to Banks A and Bank B's balance sheets, if Bank A's borrower moves the loan proceeds from Bank A to Bank B d. how much can Bank Blend out as a result of this transaction? using the simple multiple deposit approach, how much do deposits increase for the banking system as a whole when the process is completed and there are no more excess reserves in the system? Assume that no banks hold excess reserves, the public holids no currency, and reserve requirements are 10%. If Bank A sells a SIMM security to the Fed, use T accounts to show what happens: a. to Bank A's balance sheet right after the transaction with the Fed to Bank A's balance sheet, assuming it lends the full amount of additional reserves to Banks A and Bank B's balance sheets, if Bank A's borrower moves the loan proceeds from Bank A to Bank B d. how much can Bank Blend out as a result of this transaction? using the simple multiple deposit approach, how much do deposits increase for the banking system as a whole when the process is completed and there are no more excess reserves in the system

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