If an increase in excess reserves of $10 million increases checkable deposits in the banking system by a maximum of $200 million,the required reserve ratio is

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The required reserve ratio is the percentage of checkable deposits that banks are required to hold as reserves. In this case, an increase in excess reserves of $10 million increases checkable deposits by a maximum of $200 million. This means that the required reserve ratio is 10%, because 10% of $200 million is $10 million.

If an Increase in Excess Reserves of $10 Million Increases