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Business, 14.12.2020 19:20 BreadOfTheBear

You have the following data for a bank on a given date: Reserves = $500m, Deposits = $3,500m, Loans = $3,000m, Net Worth = 0, and RR ratio = 20%.

[Formulas for your use: Assets = Liabilities + Net Worth; RR = RR ratio x Deposits;

Maximum Additional Loan = ER / RR ratio]

Therefore, this bank's required reserves are ___ .

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