Problem
Third National Bank has reserves of $20,000 and checkable deposits of $200,000. The reserve ratio is 10 percent. Households deposit $20,000 in currency into the bank and that currency is added to reserves.
What level of excess reserves does the bank now have?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.