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reserved ratio and bank deposit outflow problem. provided a attachment of the whole problem. 3. Consider the following accounts of the First National Bank. Assets

reserved ratio and bank deposit outflow problem. provided a attachment of the whole problem.

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3. Consider the following accounts of the First National Bank. Assets $1333 Liabilities $13111 Reserves 20 Deposits 90 Loans 80 Share Capital 10 Required reserve ratio imposed by the Fed is 10%. a. If the Bank experiences a deposit outow of $15 mu, i. what is the new level of deposits? ii. what is the new level of reserves? iii. what is the resulting reserve ratio? b. If it is less than 10%, what can the Bank do to bring in reserves

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