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Unformatted text preview: John deposits $100 in his bank. Calculate a. The bank’s excess reserves as soon as John makes the deposit. b. The maximum amount of loans that the banking system can make. c. The maximum amount of new money that the banking system can create. [ Show the creation of loans and deposits by using T account ]...
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This note was uploaded on 09/08/2010 for the course ECON 1A at San Jose State University .