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4. Explain what is the fractional reserve banking system and how it is different from a 100% reserve banking system? Reserves Loans Assets Based

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4. Explain what is the fractional reserve banking system and how it is different from a 100% reserve banking system? Reserves Loans Assets Based on the table: First National Bank T Account $5,000 $55,000 Liabilities Deposits 60,000 Calculate the reserve ratio for this bank Calculate the money multiplier for this bank . Assuming that this bank has a $700 excess reserve then how much money can be created with that amount?

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