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If the reserve ratio is 5 percent and a bank receives a new deposit of $1,000, by how much can the bank increase its new
If the reserve ratio is 5 percent and a bank receives a new deposit of $1,000, by how much can the bank increase its new loans? (1 mark)
a.by $950b.by $1,000
c.by $5,000d.by $20,000
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