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Suppose that a commercial bank has a total checkable deposits of $50 billion and total reseves of $5 billion. Assume that the required reserve ratio

Suppose that a commercial bank has a total checkable deposits of $50 billion and total reseves of $5 billion. Assume that the required reserve ratio is 10%. How much additional loans can this bank make?

$0 billion; nothing

$5 billion

$45 billion

$10 billion

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