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(Solved): A balance sheet for a consolidated banking system is shown above. The required reserve ratio is \( ...



A balance sheet for a consolidated banking system is shown above. The required reserve ratio is \( 10 \% \).
a. Calculate the

A balance sheet for a consolidated banking system is shown above. The required reserve ratio is \( 10 \% \). a. Calculate the actual reserves: b. Calculate the required reserves: c. Calculate the excess reserves: d. What is the money multiplier? e. Calculate the maximum amount of additional loans the banking system can generate.


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Answer : Actual reserve = Vault cash + Reserve deposits = 800 + 400 = $1200 A
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