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total reserves $ 30 billion transaction $600 billion cash held by public $200 billion required reserve ratio .05 also the public deposited another 30 billion

total reserves $ 30 billion

transaction $600 billion

cash held by public $200 billion

required reserve ratio .05

also the public deposited another 30 billion in cash transaction accounts

How much would the total lending capacity of the banking system be after this portfolio switch?

How large would the money supply be if the banks fully utilized their lending capacity ?

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