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Consider the balance sheet of one of several identical banks: Assets Liabilities & Net Worth Cash Reserves $ 400 Deposits $ 2,000 Loans $1,600 Borrowing

Consider the balance sheet of one of several identical banks:

Assets	Liabilities & Net Worth
Cash Reserves	$ 400	Deposits	$ 2,000
Loans	$1,600	Borrowing	$ 0

What is the required reserve ratio?

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