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Suppose a Bank Has the Following Balance Sheet

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Suppose a bank has the following balance sheet:
Suppose a bank has the following balance sheet:    If the required reserve ratio is 10 percent,how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans? If the required reserve ratio is 10 percent,how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?


Definitions:

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