The Manager of the Bank Where You Work Tells You

Multiple Choice

The manager of the bank where you work tells you that your bank has $6 million in excess reserves. She also tells you that the bank has $800 million in deposits and $738 million in loans. Given this information you find that the reserve requirement must be

A) 7.8 percent.
B) 0.8 percent.
C) 10.8 percent.
D) 7.0 percent.