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Bank of Baroda receives a new deposit of 240 crore from one of its business customers. The customer places 42 crore in current account which

Bank of Baroda receives a new deposit of 240 crore from one of its business customers. The customer places 42 crore in current account which creates a reserve requirement of 18 percent and asked bank to place the remainder of the deposit in 9-month commercial paper which has a zero reserve requirement. However, as a precaution the banks management automatically establishes a reserve of 3 percent against commercial paper. How much of this new deposit can Bank of Baroda safely lend out to its borrowing customers?

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