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............. Assume that TD is operating at its target reserve ratio (v). The cash drain c (C/D) = 10%. If TD receives a new deposit

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Assume that TD is operating at its target reserve ratio (v). The cash drain c (C/D) = 10%. If TD receives a new deposit of $100, the maximum loan that the whole banking system can make (assume v and c are the same for all) is $ Assets Liabilities Reserve = 300 Deposits = 2000 Loans = 2200 Capital = 500 Question 25 3

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