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Increase in reserves in return

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Suppose that Third National Bank has reserves of $10,000 and checkable deposits of $100,000. The reserve ratio is 10 percent. The bank sells $10,000 in securities to the Federal Reserve Bank in its district, receiving a $10,000 increase in reserves in return. 

Instructions: Enter your answer as a whole number.

What level of excess reserves does the bank now have?

Reference no: EM131906171

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