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What is the level of required reserves and excess reserves

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Reference no: EM13327333

Suppose that a small town banking system has the following balance sheet:

Liabilities: Deposits $100

Assets: Reserves $10, loans $100, bonds $40

Net worth: $50

reserve ratio: 5%

a. what is the level of required reserves and excess reserves held by banks in this town?

Reference no: EM13327333

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