If a bank has $20,000 in deposits and $2,000 in legal reserves, then it is loaned up if the required reserve ratio is 10%.

Name: If a bank has $20,000 in deposits and $2,000 in legal reserves, then it is loaned up if the required reserve ratio is 10%.
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The required reserve ratio is 10%, which means the bank must keep 10% of its deposits as legal reserves. In this case, 10% of $20,000 is $2,000, which the bank already has. Therefore, it is loaned up and has no excess reserves available to lend out.

If a Bank Has $20,000 in Deposits and $2,000 in Legal