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Average reserve requirement on demand deposits

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An FI is planning to issue $15,000,000 in commercial loans. It will finance all of it by issuing demand deposits.What is the minimum demand deposits it needs to attract in order to fund this loan if you assume there is a 14 percent average reserve requirement on demand deposits, all reserves are held in the form of cash, and $8,000,000 of funding is through equity?

Reference no: EM132566245

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