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Given the following balance sheet for a bank when the

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

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