If excess reserves are $10 million,(total)reserves are $14 million,and the required reserve ratio is 10%,then required reserves equal ________________ and checkable deposits equal ____________________.

Question

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Required reserves are calculated as total reserves minus excess reserves, which equals $4 million ($14 million - $10 million). Checkable deposits are calculated by dividing the required reserves by the required reserve ratio, which equals $40 million ($4 million / 0.10).

If Excess Reserves Are $10 Million,(total)reserves Are $14 Million,and the Required