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Question 10: Assume the required reserve ratio, rrr, is 20%, and Chicagoland Commercial Bank's balance sheet is shown below. Caculate required and excess reserves. The

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Question 10: Assume the required reserve ratio, rrr, is 20%, and Chicagoland Commercial Bank's balance sheet is shown below. Caculate required and excess reserves. The answer to (c) What will the bank try to do with those excess reserves? Lend them out to consumers with interest! Chicagoland Commercial Bank Assets Liabilities Reserves $200 Demand Deposits : $ 300 Loans: $100 A) (a) required reserves is $200 x 0.20 = $40; (b) excess reserves is $160. (B) (a) required reserves is $300 x 0.02 = $6; (b) excess reserves is $194. O c) (a) required reserves is $100 x 0.20 = $20; (b) excess reserves is $180. ( D) (a) required reserves is $300 x 0.20 = $60; (b) excess reserves is $140

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