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Economics

Presume that banks desire to hold no excess reserves, the reserve requirement is 5% and a bank receives a new deposit of $1,000. This bank

1. Will increase its required reserves by $50.

2. Will initially see its total reserves increase by $1,000.

3. Will be able to make a new loan of $950.

4. All of the above are correct.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91224780

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