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Business, 05.05.2020 17:28 alysonmariefont

Suppose the required reserve ratio is 0.1 and Linda deposits $4,000 in cash at the College State Bank. If the bank held no excess reserves before Linda's deposit and now increases its reserves by $500, which of the following is true?
a. The bank has excess reserves of $100
b. The bank must have lent out an additional $4,000.

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