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Table 1 shows the financial position of Bank Uno once $2323.00 has been deposite

ID: 1196081 • Letter: T

Question

Table 1 shows the financial position of Bank Uno once $2323.00 has been deposited. Assume that the required reserve ratio is 8.00%, that banks do not keep excess reserves, and that all the money loaned out from Bank Uno is deposited into Bank Duo (whose loans go to other banks not shown here). Once the lending and depositing process is complete, what will the accounts look like in Tables 2 and 3? Specify all answers to two decimal places. What are Bank Uno's deposits in Table 2? What are Bank Uno's reserves in Table 2? What are Bank Uno's loans in Table 2? What are Bank Duo's loans in Table 3?

Explanation / Answer

Table 1 shows the financial position of Bank Uno once $2323.00 has been deposite

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