A. how much is the bank required to hold as reserves given its deposits of $8,000? b. how much are its excess reserves? c. by how much can the bank increase its loans?

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Bwvolleyball · Answer 1 · 2018-02-17T17:42:04+0000

A bank has excess reserves of $400,000 and makes a new loan for $50,000. If the bank faces a 25% required reserve ratio, by how much will the money supply increase when the loan is made?$200,000

A. how much is the bank required to hold as reserves given its deposits of $8,000? b. how much are its excess reserves? c. by how much can the bank increase its loans?

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