Bank of Delta has $120 in reserves, $520 in loans and checkable deposits of $640. Assume the
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Bank of Delta has $120 in reserves, $520 in loans and checkable deposits of $640. Assume the required reserve ratio is 9%. A new customer deposits $110 in a checking account. After the bank receives this new deposit, the bank transforms all its excess reserves into loans and consequently, the bank has total loans of?
Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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