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Suppose that Third Fidelity Bank currently has $50,000 in chequable deposits and $32,500 in outstanding loans. The Bank of Canada has set the reserve requirement
Suppose that Third Fidelity Bank currently has $50,000 in chequable deposits and $32,500 in outstanding loans. The Bank of Canada has set the reserve requirement at 10%. Using these values, fill in the empty cells for reserves, required reserves, and excess reserves in the following table. Third Fidelity Reserves Required Reserves Excess Reserves (Dollars) (Dollars) (Dollars)
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