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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 0.10, or 10 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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