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National Bank has $400 million in transaction deposits on its balance sheet. The current reserve requirement is 10% but the Federal Reserve is decreasing the
National Bank has $400 million in transaction deposits on its balance sheet. The current reserve requirement is 10% but the Federal Reserve is decreasing the requirement to 8%. If National Bank converts all excess reserves to loans, but borrowers return only 50% of these funds to National Bank, what does National Bank have for transaction deposits? Express your answer in millions of \$s
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