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Assume that the required reserve ratio is 20% and that there were no excess reserves in the banking system at the time at which the

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Assume that the required reserve ratio is 20% and that there were no excess reserves in the banking system at the time at which the construction company made the deposit. Assume further that Wherethebellami branch of Fifth National Bank also held $2 million in securities at the time of the construction company deposit and its balance sheet was as follows: WHIERE'I'HEHELLAMI BRANCH, FIFTH NATIONAL BANK STARTING BALANCE SHEET ASSETS LIABILITIES TOTAL RESERVES DEPOSITS W REQUIRED 12i Million EXCESS SECURIHES W LOANS W TOTAL ASSETS W TOTAL LIABILITIES W 1. Use the T-account below to Show how the deposit affected the balance sheet of Wherethehellami branch of Fifth National Bank

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