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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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