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Beleaguered Provincial Bank (BPB) holds $250 million in deposits and maintains a reserve ratio of 10 percent. a. Show a T-account for BPB. b. Now
Beleaguered Provincial Bank (BPB) holds $250 million in deposits and maintains a reserve ratio of 10 percent. a. Show a T-account for BPB. b. Now suppose that BPB's largest depositor withdraws $10 million in cash from her account. If BPB decides to restore its reserve ratio by reducing the amount of loans outstanding, show its new T-account
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