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First National Bank has $80 million in chequable deposits,$15 million in deposits with the Bank of Canada,$5 million cash in the bank vault,and $5 million in government bonds.
-If the Bank of Canada conducts a $10 million open-market sale and the reserve requirement is 20%,the maximum change in the money supply is:

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The open-market sale of $10 million reduces reserves by $10 million. With a reserve requirement of 20%, this leads to a maximum contraction in the money supply of $10 million / 0.20 = $50 million.

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