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Business, 05.05.2020 14:57, 1119diamondlord
Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $200,000. The reserve ratio is 10 percent. The bank sells $20,000 in securities to the Federal Reserve Bank in its district, receiving a $20,000 increase in reserves in return.
What level of excess reserves does the bank now have?
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Answers: 3
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Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $200,000. The res...
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