A bank has 75 mil in reserves 35 mil in bank loans and 45, Financial Management

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A bank has 75 mil in reserves 35 mil in bank loans and 45

A bank has $7.5 mil in reserves, $35 mil in bank loans, and $45 mil of deposits. If the reserve requirement is 15%, what is the bank’s reserve position? What is the maximum dollar amount of loans the bank could make? What would happen to the nation’s money supply if the Fed lowered the reserve requirement to 10% show the work?

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Financial Management: A bank has 75 mil in reserves 35 mil in bank loans and 45

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Financial Management: A bank has 75 mil in reserves 35 mil in bank loans and 45

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