Question: Using the Table 1 now assume the only way to raise reserves is to sell loans at fifty cents on the dollar. What does

Using the Table 1 now assume the only way to raise reserves

is to sell loans at fifty cents on the dollar. What does

Using the Table 1 now assume the only way to raise reserves is to sell loans at fifty cents on the dollar. What does the balance sheet look like after the sale of loans? Table 1: Capital Assets Reserves Loans Liabilities Deposits 100 20 80 Treasury Securities 10 Capital 10

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