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30 October, 02:56

Suppose a bank has $600,000 in deposits, a required reserve ratio of 5 percent, and bank reserves of $90,000. then the bank can make new loans in the amount of

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  1. 30 October, 02:58
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    600,000*0.05=30,000

    Reserve amount

    90000+30000=120000

    Loans

    600000-30000=570000 ... answer
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