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Reserves Loans Bank North's Balance Sheet Assets Liabilities $250 Deposits $2,750 Capital $3,000 $2,500 $500 $3,000 Refer to the table above. Assume that Bank North
Reserves Loans Bank North's Balance Sheet Assets Liabilities $250 Deposits $2,750 Capital $3,000 $2,500 $500 $3,000 Refer to the table above. Assume that Bank North is operating at its target reserve ratio and has no excess reserves, and that all commercial banks have the same target reserve ratio. If a new deposit to the Canadian banking system of $400 is deposited at Bank North, the total new deposits created in the banking system can be calculated as follows: O A. 500/0.15 = $3.333.33 OB. 400/0.1 = $4.000 O C. 450/0.15 = $3.000 D. 250/0.114 = $2,192.98 O E. not enough information to determine
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