Refer to the following table to answer the questions that follows: Assets: Liabilities: Deposits $1000 Reserves...

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Refer to the following table to answer the questions that follows: Assets: Liabilities: Deposits $1000 Reserves $100 Loans $9

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Answer 1

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If banks wants to all money it wants to loan out then it should utilise all of its deposits for loans hence no money in reserves

Reserve ratio is 0%

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Refer to the following table to answer the questions that follows: Assets: Liabilities: Deposits $1000 Reserves...

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Add Answer to: Refer to the following table to answer the questions that follows: Assets: Liabilities: Deposits $1000 Reserves...

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Refer to the following table to answer the questions that follows: Assets: Liabilities: Deposits $1000 Reserves...