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    How much will the bank loan given:

    25 in reserves at the Fed
    15 in ATMs
    60 in Government securites
    100 in loans

    90 in demand deposits
    110 in savings deposits

    and the reserve ratio on deposits is 5%

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    Solution Preview

    The bank's total deposit = demand deposits + savings deposits = 90+110=200
    The ...

    Solution Summary

    Loans are determined.