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Determining the federal reserve

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[Federal Reserve]

Currently a community bank has $45,000 in reserves, demand deposits of $200,000, and loans of $145,000. Shortly, it receives a $50,000 demand deposits and a $25,000 time deposit. Current reserve requirements on demand deposits and time deposits are 10% and 3%, respectively. What is the bank's reserve position? What is the maximum dollar amount of loans the bank could make?

Reference no: EM133119897

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