If excess reserves are $10,000,demand deposits are $100,000,and the required reserve ratio is 10 percent,then total reserves are

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The required reserves for $100,000 in demand deposits at a 10% reserve ratio are $10,000 (10% of $100,000). Since excess reserves are also $10,000, total reserves equal required reserves plus excess reserves, which is $10,000 + $10,000 = $20,000.

If Excess Reserves Are $10,000,demand Deposits Are $100,000,and the Required