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First National Bank has $80 million in chequable deposits,$15 million in deposits with the Bank of Canada,$5 million cash in the bank vault,and $5 million in government bonds.
-(Scenario: First National Bank)Refer to Scenario: First National Bank.If the minimum reserve ratio is 20%,how much is the bank required to keep in reserves?

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The bank is required to keep 20% of their chequable deposits in reserves, which comes to $16 million (20% of $80 million).

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