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East Lansing Bank practices 100%-reserve-banking and has zero owners equity. Total deposits at the bank...

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Accounting

East Lansing Bank practices 100%-reserve-banking and has zero owners equity. Total deposits at the bank equal $1,000. Which of the following must be true?

The bank has $1,000 cash on hand as reserves

The bank has loaned out $1,000

Total liabilities equal $0

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