Q3) a) buys bonds Min cash reserves = Assets deposits x RRR $1,000,000 x 0.2 =...

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Q3) a) buys bonds Min cash reserves = Assets deposits x RRR $1,000,000 x 0.2 = $200,000 loaned out = $IM-200,000 = $800,000 Liabilities deposits = $1009000 MB- C. MS=MB x RRR # $IM X 1 = $1MX5 0,2= $5M UH S Q3) a) buys bonds Min cash reserves = Assets deposits x RRR $1,000,000 x 0.2 = $200,000 loaned out = $IM-200,000 = $800,000 Liabilities deposits = $1009000 MB- C. MS=MB x RRR # $IM X 1 = $1MX5 0,2= $5M UH S