### How the first bank will find its reserves decrease

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A commercial bank has excess reserves of \$10,000 and a required reserve ratio of 20%. It grants a loan of \$8,000 to a customer, who then writes out a check for \$8,000 that is deposited in another bank. The first bank will find its reserves decrease by: \$2,000 \$3,000 \$1,600 \$8,000

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