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First Bank has cash reserves of $200, 000, loans of $800, 000, and deposits of $1, 000, 000. a. Prepare a balance sheet for bank.

First Bank has cash reserves of $200, 000, loans of $800, 000, and deposits of $1, 000, 000. a. Prepare a balance sheet for bank. b. If the bank maintains a reserve requirement of 12 percent, what is the largest loan it can make? c. What is the maximum amount the money supply can be increased as a result of First Bank's new loan

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