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Explain clearly, don't copy from internet Assets Liabilities (millions of dollars) Reserves at the Fed 20 Checkable deposits 110 Cash in vault 5 Savings deposits
Explain clearly, don't copy from internet
Assets Liabilities (millions of dollars) Reserves at the Fed 20 Checkable deposits 110 Cash in vault 5 Savings deposits 70 Securities 70 Loans 85 The table above shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 1 percent and there is no currency drain. The actual reserves are $ million. The desired reserves are $ million. The excess reserves are $ million. The money multiplier is The total quantity of loans after the banks have lent all their excess reserves is $ million. The total quantity of deposits after the banks have lent all their excess reserves is $ millionStep by Step Solution
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