The demand deposits of the bank must equal $500.
Money maintained in demand accounts at commercial banks is known as checkbook money or demand deposits. The majority of a country's strictly defined money supply is made up of these account balances, which are typically regarded as money. These are just bank deposits that may be withdrawn immediately and without notice. Demand deposits are typically regarded as a component of the strictly defined money supply since they can be used to pay for goods and services and settle debts via checks and drafts. Demand deposits are typically included in definitions of a country's money supply together with its currency. Customers of banks will often withdraw cash during financial crises, which causes demand deposits to decline and the money supply to contract.
Demand deposits= $20,000/40=$500
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