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Suppose a commercial banking system has $100,000 of outstanding demand deposits and actual reserves of $35,000. If the reserve ratio is 20 percent, what is

Suppose a commercial banking system has $100,000 of outstanding demand deposits and actual reserves of $35,000. If the reserve ratio is 20 percent, what is the maximum amount ($) the banking system can expand the supply of money to? Show all work. Carrying all calculations out to four (4) decimal places. Highlight in bold your answer.

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