Calculate the maximum amount of new money

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Reference no: EM13819114

For the next two questions we will consider Rimor Bank, which has the following (partial) list of accounts on its balance sheet:

Cash in the bank = $500

US government bonds = $220

Deposit in the Fed = $700

Savings deposits = $2,800

Checking deposits = $4,000

Calculate the maximum amount of new money that Rimor Bank can create, by itself.

Reference no: EM13819114

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