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Please try to answer all the questions Last Bank of Springfield If the reserve requirement is 5%, this bank: (1) is holding excess reserves of
Please try to answer all the questions
Last Bank of Springfield If the reserve requirement is 5%, this bank: (1) is holding excess reserves of $100. (2) is in a position to make a new loan of $400. (3) has total reserves of $2,000. (4) cannot make a new loan. If the reserve requirement is 25%, this bank: (1) can create money by making a new loan. (2) is holding no excess reserves. (3) is holding an excess reserve of $1,000. (4) is holding an excess reserve of $2,000Step by Step Solution
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