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Homework answers / question archive / Assume that the following data describe the condition of the banking system: Total reserves $100 billion Transactions deposits $800 billion Cash held by public $400 billion Reserve requirement 0
Assume that the following data describe the condition of the banking system:
| Total reserves | $100 billion |
| Transactions deposits | $800 billion |
| Cash held by public | $400 billion |
| Reserve requirement | 0.10 |
Suppose the Fed wanted to stop further lending activity. To do this, what reserve requirement should the Fed impose?
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