Question: The table below is the combined balance sheet for all the banks in a banking system. Each bank has a target reserve ratio of 5
The table below is the combined balance sheet for all the banks in a banking system. Each bank has a target reserve ratio of a Fill in the blanks in column reflecting the complete effect of all excess reserves being loaned out. b The maximum possible increase in the money supply is $ c Returning to the original balance sheet, if the target reserve ratio changes to the quantity of loans the system be forced to call in will be $ Write in the figures in columns that show this process completed.
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