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The bank sells 20000 in securities to the federal reserve

Suppose that Third National Bank has reserves of $20,000 and check able deposits of $200,000. The reserve ratio is 10 percent. The bank sells $20,000 in securities to the Federal Reserve Bank in its district, receiving a $20,000 increase in reserves in return.

What level of excess reserves does the bank now have?

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Computer Network Security: The bank sells 20000 in securities to the federal reserve

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Computer Network Security: The bank sells 20000 in securities to the federal reserve

Reference No:- TGS02927698

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