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Bank typically lends any excess reserves immediately

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Reference no: EM132235584

The Federal Reserve purchases ?$11 million in U.S. Treasury bonds from a bond? dealer, and the? dealer's bank credits the? dealer's account. The required reserve ratio is 12?%, and the bank typically lends any excess reserves immediately.

Assuming that no currency leakage? occurs, calculate how much will the bank be able to lend to its customers following the? Fed's purchase. ?$_______ million.  

?(Enter your response rounded to two decimal? places.)

Reference no: EM132235584

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