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What will happen to the money supply

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Reference no: EM131344378

Given the following balance sheet for a bank when the reserve requirement is 20%: How much can it lend out? Why? What will happen to the money supply? How will this occur? Why? What might limit this?

Assets

Liabilities and Net Worth

Reserves            $  50,000

Loans                     70,000

Securities               30,000

Property               100,000

Checkable deposits             $150,000

Stock Shares                         100,000

Reference no: EM131344378

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