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Use the Information in This T-Account to Calculate This Bank's

Question 241

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Use the information in this T-account to calculate this bank's reserve ratio. Assume that the reserve requirement is 25%. Is this bank meeting this reserve requirement? Calculate the new reserve ratio if the loan recipients convert their checking account balances to cash and take the cash out of this bank. Is the bank still meeting its reserve requirement? Use the information in this T-account to calculate this bank's reserve ratio. Assume that the reserve requirement is 25%. Is this bank meeting this reserve requirement? Calculate the new reserve ratio if the loan recipients convert their checking account balances to cash and take the cash out of this bank. Is the bank still meeting its reserve requirement?

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The reserve ratio = reserves/checking ac...

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