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What is the level of required reserves

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Reference no: EM132072170

If the required reserve ratio is 10% and $4000 is deposited into a checking account at 1st National Bank:

  • What is the level of required reserves?
  • What is the level of excess reserves?
  • What is the maximum amount of M1 that can be created as a result of this $4000 deposit?

Reference no: EM132072170

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