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explain the asset and liability side in detail please!! 2) Assume that, initially, the central bank of an economy puts $800,000 into circulation and commercial

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explain the asset and liability side in detail please!!

image text in transcribed
2) Assume that, initially, the central bank of an economy puts $800,000 into circulation and commercial banks want to hold reserves of 25 percent of deposits In this country, the public nearly immediately redeposits and does not carry any currency. Show balance sheets for each of the following moments in time. You are not judged on formatting, but only on content. a) Commercial banks Initial situation, assuming no currency beyond the $800,000 has ever existed b) Commercial bank immediately after one round of loans, but before re-deposit. c) Commercial banks after first redeposit

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