Given a desired reserve ratio of 20 percent, a commercial bank that has received a new deposit of
$100 can make additional loans of

Name: Given a desired reserve ratio of 20 percent, a commercial bank that has received a new deposit of $100 can make additional loans of
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Question

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With a reserve ratio of 20 percent, the bank is required to hold 20 percent of the deposit as reserves and can lend out the remaining 80 percent. Therefore, the bank can make additional loans of $80.

Given a Desired Reserve Ratio of 20 Percent, a Commercial