A customer of a bank needs additional currency and cashes a check for $10,000. The reserve requirement is 20%. The bank has no excess reserves. It must

Name: A customer of a bank needs additional currency and cashes a check for $10,000. The reserve requirement is 20%. The bank has no excess reserves. It must
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Question

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The bank needs to maintain a reserve of 20% of the $10,000, which is $2,000. Since it has no excess reserves, it needs to acquire the remaining $8,000 to cover the check.

A Customer of a Bank Needs Additional Currency and Cashes