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Bank of NAIT Balance Sheet ($0005) r=20% Assets Liabilities Actual Reserves 50,000 Demand Deposits $ Desired Reserves 30,000 Excess Reserves Securities 85,000 Loans 120,000 Others

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Bank of NAIT Balance Sheet ($0005) r=20% Assets Liabilities Actual Reserves 50,000 Demand Deposits $ Desired Reserves 30,000 Excess Reserves Securities 85,000 Loans 120,000 Others 60,000 What is the maximum amount of new loan that The Bank of NAIT can make? 040,000 030,000 O20,000 015,000 What is the money multiplier? 04 05 010 O20 What is the maximum amount of new money that the Banking system can create as a result of The Bank of NAIT's maximum loan amount? O20,000 0100,000 O200,000 40,000 If the Bank of NAIT keeps some excess reserves, the amount of new money that the Bank of NAIT can create will Odecrease Onot change Oincrease Odepends on the Ralph Klein Effect If the Bank of NAIT decreased its desired reserve ratio, the amount of new money that the Bank of NAIT can create will Odecrease Onot change Oincrease Odepends on the Ralph Klein Effect

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