Why the demand deposits on the liabilities side

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Suppose the bank in the table below has only reserves and loans on the asset side of its balance sheet, and demand deposits on the liabilities side of its balance sheet. Assets Liabilities Reserves $36,000 Demand Deposits $300,000 Loans ? If the legal reserve requirement is only 5%, the balance sheet above shows that the bank holds ____ in excess reserves.

Reference no: EM13214228

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