The third national bank has reserves of 20000 and checkable


The Third National Bank has reserves of $20,000 and checkable depositts of $100,000. The reserve ration is 20%. Households deposit $5,000 in currency into the bank that is added to reserves. What level of excess reserves does the bank now have? Also assume the bank does not use new deposits to make new loans.

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Econometrics: The third national bank has reserves of 20000 and checkable
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