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The Bank of Manitoba has cash reserves of $20,000 and demand deposits of $100,000. The desired reserve ratio is 20 percent. Households deposit $5000 in

The Bank of Manitoba has cash reserves of $20,000 and demand deposits of $100,000. The desired reserve ratio is 20 percent. Households deposit $5000 in currency into the bank and that currency is added to cash reserves.

What level of excess reserves does the bank now have?

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