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Consider the following simplified balance sheet for a bank: a . If the desired reserve ratio is 0 . 1 0 , or 1 0
Consider the following simplified balance sheet for a bank:
a If the desired reserve ratio is or percent, this bank currently holds in excess reserves.
b The maximum amount by which the bank can expand its loans is
c Complete the following simplified bank balance sheet to show the immediate impact if the bank makes the loans in part b
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