In September 2008, Regions Bank held $78 million in loans, $95 million in deposits and $5 million in reserves. If Regions Bank's desired reserve ratio is 2.5 percent, then the bank

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Regions Bank's desired reserve ratio is 2.5%, which means it needs to hold $2.375 million in reserves (2.5% of $95 million in deposits). Since it has $5 million in reserves, it has excess reserves of $2.625 million, allowing it to create money and make loans.

In September 2008, Regions Bank Held $78 Million in Loans