Bank One has reserves of $100,000,government securities of $200,000,loans of $700,000,and checkable deposits of $800,000.If the desired reserve ratio is 10 percent,Bank One can make additional loans totaling

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The desired reserve ratio is 10%, so Bank One needs to keep 10% of its checkable deposits ($800,000) as reserves, which is $80,000. Since Bank One has $100,000 in reserves, it has $20,000 in excess reserves that can be used to make additional loans.

Bank One Has Reserves of $100,000,government Securities of $200,000,loans of $700,000,and