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Say the reserve requirement is 20 percent. If you pay back a loan of $10,000 a bank had previously made to you, the act of

Say the reserve requirement is 20 percent. If you pay back a loan of $10,000 a bank had previously made to you, the act of paying back the loan:

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adds $2,000 in bank reserves.

adds $10,000 in bank reserves.

eliminates $2,000 in bank reserves.

eliminates $10,000 in bank reserves.

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