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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With a reserve ratio of 20%, the bank must keep 20% of deposits as reserves and can loan out the remaining 80%. Therefore, from a new deposit of $100, it can make additional loans of $80.

Given a Desired Reserve Ratio of 20 Percent, a Commercial