Suppose Joe, a small busi

Suppose Joe, a small busi

Suppose Joe, a small business owner, is worried about the banking system and decides to keep this week’s revenue of 1000 dollars in his safe instead of depositing it in his bank account. Assume that on average people hold 5 percent of their money in currency and that the required reserve ratio 3 percent. How much money could Joe’s bank give out in loans if he had deposited the money in his bank account

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