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Supposethat Goldstar Bank is completely loaned up. Now suppose that a customer deposits an additional $40,000 into the bank. Assume the reserve requirement is 25
Supposethat Goldstar Bank is completely "loaned up." Now suppose that a customer deposits an additional $40,000 into the bank. Assume the reserve requirement is 25 percent.
Instructions:Enter your answers as whole numbers.
a. As a consequence of the$40,000 deposit,Goldstar Bank will now have excess reserves in the amount of $.
b. As a result of the$40,000 initial depositinto Goldstar Bank,the banking system can generate a maximum of $in new deposits and loans.
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