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QUESTION 29 3 points Save Answer Suppose that the first national bank currently holds a total of 39 million dollars in deposi

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Answer #1

As bank is loaned up it means excess reserve is zero.

So all the cash is the required reserve

Required reserve formula = reserve ratio (RR)*deposit

RR = deposit / Required Reserve

So here we have required reserve = 2 million

Deposit = 39 million

RR = 39/2 = 19.5%

Ans - 19.50

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