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Business, 23.11.2019 02:31 kittylover613
If the reserve requirement is 10 percent, a bank desires to hold no excess reserves, and it receives a new deposit of $500, it
a. must increase required reserves by $50.
b. will initially see reserves increase by $500.
c. will be able to use this deposit to make new loans amounting to $450.
d. all of the above are correct.
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If the reserve requirement is 10 percent, a bank desires to hold no excess reserves, and it receives...
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