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If the reserve requirement is 12 percent and banks desire to hold no excess reserves, when a bank receives a new checking deposit of $1,000
If the reserve requirement is 12 percent and banks desire to hold no excess reserves, when a bank receives a new checking deposit of $1,000
- it increases required reserves by more than $150
- it's total reserves initially increase by $120
- it will be able to make new loans ip to a maximum of $880
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