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The Turkish Bank Limited (TBL) has been informed by the central bank that the required reserve ratio is 10%. Assume that the banking system has
The Turkish Bank Limited (TBL) has been informed by the central bank that the required reserve ratio is 10%. Assume that the banking system has $20 million in deposits and $5 million in reserves.
e. Calculate the required reserves.
f. Compute the excess reserves.
g. Determine the maximum amount by which demand deposits could expand.
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