Bank A has checkable deposits of $10 million and total reserves of $1 million.The required reserve ratio is 9 percent.The bank has required reserves of

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The required reserve ratio is 9%, so the bank is required to hold reserves of 9% of its checkable deposits. Therefore, the bank's required reserves are $10 million x 0.09 = $900,000. Since the bank has total reserves of $1 million, its excess reserves are $1 million - $900,000 = $100,000.

Bank a Has Checkable Deposits of $10 Million and Total