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Consider an individual who moves to Canada and brings with him $40 000 in Canadian currency, which he deposits in a Canadian bank. For each

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Consider an individual who moves to Canada and brings with him $40 000 in Canadian currency, which he deposits in a Canadian bank. For each of the cases below, compute the overall change in deposits and reserves in the Canadian banking system as a result of this new deposit. a. 10 percent target reserve ratio, no cash drain, no excess reserves b. 10 percent target reserve ratio, 3 percent cast drain, no excess reserves c. 10 percent target reserve ratio, 5 percent drain, 5 percent excess reserves

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