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ASSUME THAT THE REQUIRED RESERVE Assume that the required reserve ratio on checkable deposits is 10%, banks FOR MORE CLASSES VISIT www.tutorialoutlet.com Assume that the required reserve ratio on checkable deposits is 10%, banks do not hold any excess reserves, and the public‘s holdings of currency do not change. If the Fed reduces reservesby selling $5 million worth of bonds to he banks, what will the T-amount of the banking system look like when
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