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Question: The commercial banks in Econoland have Reserves $1,000 million Loans $7,000 million Deposits $8,000 million Total assets $10,000 million The banks hold no excess reserves.
a. Calculate the banks' reserve ratio.
b. Sandee, an immigrant, arrives in Econoland with $5 million, which she deposits in a bank. How much does Sandee's bank lend initially?
c. How much money will the banking system generate from Sandee's deposit?
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In a sample of 600 people who suffered muscular pain, the medicine provided relief for 402 persons.
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An eight-year note with an annual stated rate of 8 percent and a face value of $35,000.Interest is paid annually on December 31. The effective interest rate is 10 percent.
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