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Question Two: Use the following to answer questions below the table: Table (1): ABC Bank balance sheet Assets Liabilities Total Reserves AED 80,000 Demand Deposits
Question Two: Use the following to answer questions below the table:
Table (1): ABC Bank balance sheet
Assets | Liabilities |
Total Reserves AED 80,000 | Demand Deposits AED 200,000 |
Loans AED 120,000 |
1) Refer to Table (1). With a required reserve ratio of 25 percent, ABC Bank could change Money
Supply of: (show your answer) .
2)Refer to Table (1). With total reserves of $80,000 and a required reserve ratio of 25 percent, ABC Bank could support maximum Money Supply of: (show your answer)
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