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please show work A Bank has $100 million in capital, and $900 million of checkable deposit. The bank currently maintains a total reserve of $100
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A Bank has $100 million in capital, and $900 million of checkable deposit. The bank currently maintains a total reserve of $100 million dollars, $200 million in T-bills, and rest in loans. A new corporate customer opens a checkable deposit account, and deposit $100 million. 1a. Please show the T-Account of the bank after the deposit? 1b. If the required reserve ratio is 10%, what is likely to happen? 1c. If the required rate for reserves increase to 11%, what should the bank do? How much can the bank lend out after the adjustment? Assume the bank want to maximize returnStep by Step Solution
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