Assume that the commercial banking system has 500TL of deposits and the banks hold no excess reserves. The required reserve ratio is 10%. If the Central Bank sells T-bills in the amount of 25TL and banks lend to the maximum extent permitted, assuming no cash drain, loans: a.decrease by 225TL b.decreases by 20TL c.decrease by 100TL d.increase by 25TL e.decrease by 25

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