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Copy and complete the following table and illustrate how an initial deposit of R1 000000 leads to the creation of new loans. Assume a 4%
Copy and complete the following table and illustrate how an initial deposit of R1 000000 leads to the creation of new loans. Assume a 4% cash reserve ratio, and that all loans are deposited at the same bank. (5) 2.2 Using the credit multiplier, calculate the total amount of deposits (including the initial deposit) that can be created from the initial R1 000000 deposit. Show your calculations. (2)
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