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Business, 30.03.2020 20:14 whyidkmyself

Three banks are operating in a town under a statewide system of free banking. Bank A has $50 of Bank B’s currency. B has $40 of Bank C’s currency. And C has $30 of Bank A. a. Provide an order of reconciliation under bilateral trade requires the greatest amount of reserves? Show this result. b. Provide an order of reconciliation under bilateral trade requires the least amount of reserves? Show this result. c. Show how multilateral reconciliation through a clearinghouse will economize on reserves.

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