Suppose a bank has $1,000,000 in deposits and a minimum reserve requirement of 20 percent.Then required reserves are:

Name: Suppose a bank has $1,000,000 in deposits and a minimum reserve requirement of 20 percent.Then required reserves are:
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The required reserves are equal to 20% of the deposits, which is $200,000. This means that the bank must hold on to $200,000 of its deposits and cannot lend it out. The remaining $800,000 can be lent out or invested.

Suppose a Bank Has $1,000,000 in Deposits and a Minimum