-Refer to Table 13.4. If the required reserve ratio is 5%, First Charter Bank:

Name: -Refer to Table 13.4. If the required reserve ratio is 5%, First Charter Bank:
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If the required reserve ratio is 5%, First Charter Bank needs to hold 5% of its deposits as reserves. If it has more reserves than required, the difference is excess reserves. The problem implies that First Charter Bank has excess reserves of $100,000.