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If the Total Deposits of the Banking System Are $400

question 185

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If the total deposits of the banking system are $400 billion, how much money could these reserves support if the required reserve ratio is 0.20 and banks hold no excess reserves?

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Definitions:

Mailbox

A storage location on a server where a user's email messages are kept.

Data File

A file that contains data used by a computer application. Examples include databases, spreadsheets, and configuration files.

Message Area

A designated space in a user interface where messages, alerts, or notifications to the user are displayed.

Message Header

The section of an email or other message that contains metadata such as sender, recipient, date, and subject.

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