A bank receives 350 million in deposits at the same time, Finance Basics

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A bank receives 350 million in deposits at the same time

Question: A bank receives $350 million in deposits. At the same time, the central bank increases the reserve requirements for demand deposits from 10% to 16%. Estimate the impact on the total loans distributed into the economy before and after the change in reserve requirements.

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Finance Basics: A bank receives 350 million in deposits at the same time

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Finance Basics: A bank receives 350 million in deposits at the same time

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