If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is:

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The maximum amount of checkable deposits a bank can have is determined by dividing its actual reserves by the reserve requirement ratio. With actual reserves of $40,000 and a 20 percent reserve requirement, the calculation is $40,000 / 0.20 = $200,000.

If a Bank Has Actual Reserves of $40,000 and a 20