danielrubiozxcvbnm danielrubiozxcvbnm

06-01-2024
Advanced Placement (AP)

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Assume that the required reserve ratio is 1/5 (or 20%) and that Bank Z has no excess reserve. If an individual deposits $1,000 cash into her bank account at Bank Z, what is value of each of the following?

Maximum amount of new loans from Bank Z; Maximum amount of new deposits in the system

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