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Question
The reserve requirement is 0 percent on the first $8 million in transaction deposits, 3 percent on amounts between $8 million and $50 million, and 10 percent on amounts above $50 million. A bank with transaction deposits totaling $7 million has required reserves equal toa. $0.00 million.
b. $0.21 million.
c. $0.70 million.
d. $1.17 million.
Answer
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