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Solve the following A bank has excess reserves of $6,000 and demand deposit liabilities of 100,000 when the required reserve ratio is 20 percent.
Solve the following A bank has excess reserves of $6,000 and demand deposit liabilities of 100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, calculate the bank's excess reserves? If a bank has excess reserves of $15,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, calculate the bank total Reserves. Assume that no banks hold excess reserves, and the public holds no currency. If a bank sells a $100 security to the Fed, explain what happens to this bank and two additional steps in the deposit expansion process, assuming a 10% reserve requirement. How much do deposits and loans increase for the banking system when is the process completed? If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 10 percent, then the bank has actual reserves of..
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