When $1 million is deposited at a bank,the required reserve ratio is 20 percent,and the bank chooses not to hold any excess reserves but instead makes loans,then in the bank's final balance sheet,

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The required reserve ratio is 20%, so the bank must hold $200,000 as reserves. The remaining $800,000 can be loaned out. Therefore, reserves increase by $200,000.

When $1 Million Is Deposited at a Bank,the Required Reserve