If the banking system has demand deposits of $100,000,total reserves equal to $20,000,and a required reserve ratio of 20 percent,the banking system can increase the volume of loans by

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The required reserves are 20% of $100,000, which is $20,000. Since total reserves are also $20,000, there are no excess reserves available to increase the volume of loans.

If the Banking System Has Demand Deposits of $100,000,total Reserves