A commercial bank has deposited liabilities of $100,000 their current reserves $37,000 and they have...
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Accounting
A commercial bank has deposited liabilities of $100,000 their current reserves $37,000 and they have required reserve ratio of 20%.
1. How much additional money can this commercial bank loan out? .
2. How much new money can be created in the banking systems if this specific bank increased their loan?
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