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Foregone interest due to reserve requirements declines

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Reference no: EM132288667

For every ?$1000 in? deposits, the amount that banks lost in forgone interest? (opportunity cost) because of reserve requirements if banks charged 14?% on loans and the require reserve ratio was 21% is $_______. (Round your response to the nearest two decimal? place.)

If the required reserve ratio? decreases, then the foregone interest due to reserve requirements declines, remains the same, or rises?

Reference no: EM132288667

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