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The First National Bank has a checkable deposit that amounts to $5 million and excess reserves that amount to 0. If the reserve is 10%,

The First National Bank has a checkable deposit that amounts to $5 million and excess reserves that amount to 0. If the reserve is 10%, what are the bank's total reserves?

$5 million x 10% = $500,000

Is $500,000 the correct answer?

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