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Use the following balance sheet for XYZ Bank,which is one of many banks in a banking system.
Table 13.1-XYZ Bank balance sheet
-Refer to Table 13.1.With total reserves of $50,000 and a required reserve ratio of 25 percent,potential deposit creation for the banking system is equal to:
Fiduciary
A person or organization that acts on behalf of another individual or individuals, managing assets for their benefit with a duty to act in their best interest.
Ultimate Recipient
The final beneficiary or entity that receives funds or benefits, often in the context of grants or financial transactions.
Demonstrative Legacy
A gift of a specific amount of money or property to be given to a designated beneficiary from a particular source or asset.
Probate
A legal process through which a deceased person's estate is administered and processed in court to distribute assets to beneficiaries and settle debts.
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