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Suppose a bank has $100,000 in deposits, a required reserve ratio of 10 percent, and total reserves of $10,000. Then the bank can make new

Suppose a bank has $100,000 in deposits, a required reserve ratio of 10 percent, and total reserves of $10,000. Then the bank can make new loans in the amount of:

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$10,000.

$20,000.

$40,000.

Zero.

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