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Suppose that the banking industry is competitive and it has zero equity.The effective legal reserve requirement is 25%.Assume that there are three banks, A, B, and C.Bank A initially receives $2,500 in deposits.
-According to the Fixed Coefficient Model, what is the amount of excess reserves in Bank A?
A)$500
B)$625
C)$1,250
D)$1,875
E)$2,500

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Use the following information for questions 
Suppose that the banking industry is competitive and it has zero equity.The effective legal reserve requirement is 25%.Assume that there are three banks, A, B, and C.Bank A initially receives $2,500 in deposits.
-According to the Fixed Coefficient Model, what is the amount of excess reserves in Bank A?
A)$500
B)$625
C)$1,250
D)$1,875
E)$2,500

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The Answer of Use the following information for questions 
Suppose that the banking industry is competitive and it has zero equity.The effective legal reserve requirement is 25%.Assume that there are three banks, A, B, and C.Bank A initially receives $2,500 in deposits.
-According to the Fixed Coefficient Model, what is the amount of excess reserves in Bank A?
A)$500
B)$625
C)$1,250
D)$1,875
E)$2,500

Use the Following Information for Questions