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OpenStudy (anonymous):
At the start required reserved (RR)=legal reserves (LR)=$100($1,000 X0.1) With a deposit of $500, assuing that the bank places entire amount into LR, both demand deposits and LR increase by $500. Thus RR=$150($1,500 X0.1) and LR=$600. Excess reserves (ER) now equal $450($600-$150), which is the amount the bank can lend.
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