If a bank has $500,000 in checkable liabilities, the required reserve ratio is 20 percent, and the bank has $100,000 in reserves, then excess reserves are equal to

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The bank's required reserves are 20% of $500,000, which equals $100,000. Since the bank has $100,000 in reserves, which is exactly the amount required, its excess reserves are $0.

If a Bank Has $500,000 in Checkable Liabilities, the Required