Suppose $50 comma 000 is deposited at a bank. the required reserve ratio is 20 percent, and the bank chooses not to hold any excess reserves but makes loans instead. what are the bank's total reserves?

$10,000

Explanation:

Provided amount deposited to bank = $50,000

Reserve ratio is 20%

And provided the company do not have any amount more than the required reserve, therefore balance in reserve = $50,000 20% = $10,000

Further remaining $50,000 - $10,000 = $40,000 will be advanced as loan, and will not form part of reserves.

Therefore, total reserve's of bank = $10,000

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