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II Analytical 3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 the person holds. In this case, the
II Analytical 3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 the person holds. In this case, the following would be the balance sheet of The Friendly Bank. Now suppose the bank desires reserve-deposit ratio are 0.25. Show the bank's balance sheet, the Balance Sheet on Monday Assets R $800 Liabilities D $800 M2 $1000 MB $1000 monetary base, and the money supply for Tuesday and Wednesday. Balance Sheet on Tuesday M2 MB Assets R L Liabilities D Balance Sheet on Wednesday M2 MB Assets Liabilities FL R 9999 D
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Financial Accounting Theory
Authors: William R. Scott, Patricia O'Brien
8th Edition
013416668X, 978-0134166681
