Suppose the Fed requires all banks to hold a reserve of 4 percent on the first $45 million of customer deposits, and 10 percent on all deposits above that. If a bank has $100 million on deposit, what is the amount of the reserve requirement?

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The Answer of Suppose the Fed requires all banks to hold a reserve of 4 percent on the first $45 million of customer deposits, and 10 percent on all deposits above that. If a bank has $100 million on deposit, what is the amount of the reserve requirement?

Suppose the Fed Requires All Banks to Hold a Reserve