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Balance sheet of the Summer bank Assets Liabilities Cash $ 8,000 Deposited with the Fed $6,000 Deposits S 80,000 Loans $ 116,000 Capital $

Balance sheet of the Summer bank Assets Liabilities Cash $ 8,000 Deposited with the Fed $6,000 Deposits S 80,000 Loans $ 116,000 Capital $ 50,000 Total $ 130,000 Total $ 130,000 The required reserve ratio (RRR) on all deposits is 8% How much new amount of loan will this bank be able to create with the RRR of 5%?

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