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Business, 29.06.2019 09:10 david6835

Abank borrows $100,000 from the fed, leaving a $100,000 treasury bond on deposit with the fed to serve as collateral for the loan. the discount rate that applies to the loan is 4 percent and the fed is currently mandating a reserve ratio of 10 percent. how much of the $100,000 borrowed by the bank must it keep as required reserves?

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