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Your bank has the following balance sheet: Assets Liabilites Reserves $50 millon Checkable Deposits $200 million Securities $50 million Bank Capital $50 million Loans $150
Your bank has the following balance sheet:
Assets | Liabilites |
Reserves $50 millon | Checkable Deposits $200 million |
Securities $50 million | Bank Capital $50 million |
Loans $150 million |
If the required reserve ratio is 10%, what possible actions can the bank manager take if there is an unexpected deposit outflow of $50 million?
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