What is maximum amount of additional loans the bank can make
Problem
Assume the required reserve ratio is 15%, the amount of deposits in a bank are $1,231 and the bank is holding $595: in reserves. What is the maximum amount of additional loans this bank can make?
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Assume the required reserve ratio is 15%, the amount of deposits in a bank are $1,231. What is the maximum amount of additional loans this bank can make?
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