Assume that banks aim to hold no excess reserves. The AAA bank responds to the change in its reserve position in part (b) by maximizing its loan portfolio. Under this assumption, show AAA's T-Account after it has fully adjusted to the change in its reserve position. Explain what actions occurred that caused the balance sheet to change.  AAA Bank Assets Liabilities

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A:

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.