If a bank has zero excess reserves,the required reserve ratio is 20 percent,and a check for $100,000 is deposited in Bank ABC,excess reserves for Bank ABC now equal

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When a $100,000 deposit is made, with a 20% reserve requirement, the bank must keep $20,000 (20% of $100,000) as required reserves. The remaining $80,000 is excess reserves, which the bank can lend out.

If a Bank Has Zero Excess Reserves,the Required Reserve Ratio