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Suppose that the economy's entire money supply equals checkable deposits in the amount of $1,500,000 held in First Main Street Bank. The required reserve ratio
Suppose that the economy's entire money supply equals checkable deposits in the amount of $1,500,000 held in First Main Street Bank. The required reserve ratio (r) is 10%, with no excess reserves and no cash leakage. Complete the following table to reflect the relevant part of the balance sheet for First Main Street Bank (before the bank makes any new loans). Assets Liabilities Reserves Checkable Deposits Loans
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