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The following table lists some statistics on Boring Bank.CategoryAmount ...

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The following table lists some statistics on Boring Bank.CategoryAmount ...

The following table lists some statistics on Boring Bank.

Category	Amount (dollars)
Reserves	________
Demand deposits	200
Long-term debt	________
Cash equivalents	80
Short-term borrowing	95
Long-term investments	230

Refer to the table above. If Boring Bank increases its loans to use all its excess reserves with the required reserve ratio being at 10 percent, and the borrowers deposit the loans into Boring Bank, what is the new stockholder's equity?

▸ $90

▸ $10

▸ $60

▸ $50

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

Read 129 times

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