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Alpha Bank's Balance Sheet Is Shown in the Following Table

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Alpha Bank's balance sheet is shown in the following table: Alpha Bank's balance sheet is shown in the following table:   If the bank is fully loaned up,what is its required reserve ratio? Suppose a depositor adds $5,000 to her account with Alpha Bank.If the bank uses the additional deposit to make a loan and the funds are deposited in Beta Bank (which also is fully loaned up),what does Beta Bank's balance sheet look like? If the bank is fully loaned up,what is its required reserve ratio? Suppose a depositor adds $5,000 to her account with Alpha Bank.If the bank uses the additional deposit to make a loan and the funds are deposited in Beta Bank (which also is fully loaned up),what does Beta Bank's balance sheet look like?


Definitions:

Pure Competition

Refers to a market structure where there are many sellers and buyers, products are homogeneous, and there is free entry and exit in the market.

Free Enterprise

An economic system based on private ownership, voluntary exchange, competition, and the freedom of individuals to engage in business transactions.

Oligopoly

A market structure characterized by a small number of large firms dominating the industry, often leading to limited competition.

Pure Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, leading to significant control over prices.

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