henry28691 henry28691
  • 19-01-2024
  • Business
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Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and demand deposits are the only form of money. A commercial bank receiving a new demand deposit of $100 would be able to extend new loans in the amount of
a. $10.
b. $90.
c. $100.
d. $1,000.

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