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Suppose Bank A holds $200 of reserves, has deposits of $1000, and the desired reserve ratio is 15 %. How many loans can Bank A

Suppose Bank A holds $200 of reserves, has deposits of $1000, and the desired reserve ratio is 15 %. How many loans can Bank A create at Bank A?

a). Zero, because Bank A has no excess reserves

b) $50

c) $850

d) $200

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