What is maximum size loan bank can make once check clears

Reference no: EM13220020

The more people decide to hold currency, the A bank currently has $50 million in deposits, $6 million in cash in the vault, $4 million on deposit with the Fed, and $5 million in government securities. The required reserved ratio is percent. A new deposit is made of $1 million. What is the maximum size loan the bank can make once the check clears?

Reference no: EM13220020

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