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Assume that there are 2 banks, a and z, in the banking system. Bank a receives a primary deposit of $600,000, and it must keep
Assume that there are 2 banks, a and z, in the banking system. Bank a receives a primary deposit of $600,000, and it must keep reserves of 12 percent against deposits. Bank a makes a loan in the amount that can be safely lent. Show what bank as balance sheet of assets and liabilities would look like immediately after the loan
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