Elucidate five specific actions which can be expected

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Q. Assume Bank A which faces a reserve requirement of 10 percent (%), receives a $1,000 deposit from a customer.

a. Assuming which it wishes to hold no excess reserves, conclude how much the bank should lend.

Q. Five specific actions which can be expected to cause the equilibrium of ice cream to increase.

Q. If the required reserve ratio is lowered to 5%, how much can a bank create in additional loans?

Reference no: EM1343774

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