A bank has 100 customers that deposit $10,000 each into a checking account. The bank...
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Finance
A bank has 100 customers that deposit $10,000 each into a checking account. The bank decides to make a $400,000 mortgage loan to a new customer. According to Fractional Reserve Banking,
1. What is the percentage of reserves the bank is holding after the loan?
1.1 A. If 10 individuals close their accounts by withdrawing their entire deposits of $10,000 each, what
is the new percentage of reserves?
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