The manager of the bank where you work tells you that your bank has $10 million in excess reserves.She also tells you that the bank has $400 million in deposits and $375 million dollars in loans.Given this information you find that the reserve requirement must be
A)10/400.
B)25/400.
C)35/400.
D)15/400.

Question

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The Answer of The manager of the bank where you work tells you that your bank has $10 million in excess reserves.She also tells you that the bank has $400 million in deposits and $375 million dollars in loans.Given this information you find that the reserve requirement must be
A)10/400.
B)25/400.
C)35/400.
D)15/400.

The Manager of the Bank Where You Work Tells You