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A bank holds $1100 in reserves, has $1800 worth of deposits, and has loaned out $800. Apart from these, the bank does not hold any other assets or liabilities. The required reserve ratio is 20%. What is the bank's net worth (in $)?

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The task is to determine the bank's net worth given its balance sheet entries. First, identify total assets: there are reserves worth 1100 and loans wort......Login to view full explanation

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