Suppose a banking system with the following balance sheet has no excess reserves. Assume that banks will make loans in the full amount of any excess reserves that they acquire and will immediately be able to eliminate loans from their portfolio to cover inadequate reserves. Instructions: In part a, enter your response as a percentage rounded to one decimal place. For all other parts, enter your responses as a whole number. a. What is the reserve requirement
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Suppose a banking system with the following balance sheet has no excess reserves. Assume that banks...
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