Consider a situation where an individual sold a car for $20,000 and then deposited the $20,000 he received into his checking account at the bank. With that information, answer the questions that follow.
-After the initial deposit,the bank decides to lend out the legally maximum amount of funds to borrowers who do business at other banks.If the required reserve ratio is 25%,write out the bank's balance sheet and include the entries for required reserves,excess reserves,loans,and deposits.
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