A bank has checkable deposits of $1,000,000 and a required reserve ratio of 10%. If the bank's reserves fall to $80,000, which action would best help the bank comply with reserve requirements?

To comply with reserve requirements, a bank must hold a certain percentage of its checkable deposits as reserves. In this case, with checkable deposits of $1,000,000 and a required reserve ratio of 10%, the bank needs to have $100,000 in reserves. Since the bank currently only has $80,000, it is short by $20,000. To resolve this, the bank could either borrow money from another bank or sell some of its assets to raise the needed reserves. For example, if the bank sells securities worth $20,000, it can meet the reserve requirement and ensure it operates within the rules.