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Business, 21.12.2019 06:31 modelingavakin

Assume that the reserve requirement is 20 percent. first national bank has vault cash and deposits with the fed of $80 million, loans and securities of $320 million, and demand deposits of $400 million. first national: a. could extend a maximum of $10 million of additional loans. b. could extend a maximum of $20 million of additional loans. c. is not in a position to extend additional loans. d. could extend a maximum of $40 million of additional loans.

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