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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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