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Suppose that a bank has $80m in checkable deposits (D), reserves (R) of $15m and is subject to a reserve requirement (rr) of 10%. Now

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Suppose that a bank has $80m in checkable deposits (D), reserves (R) of $15m and is subject to a reserve requirement (rr) of 10%. Now assume that the bank suffers a $12m deposit outflow. If the bank chooses to borrow from the Fed to meet its reserve requirement, then how much would the bank would need to borrow? Round your answer to the 2nd decimal place. Borrowings from the Fed

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