The Shirley State Bank Has $90 Million in Transaction Deposits

Multiple Choice

The Shirley State Bank has $90 million in transaction deposits subject to legal reserves.The bank must hold 3 percent legal reserves up to $43.9 million of transaction deposits and 10 percent legal reserves on any amount above this.What is the bank's total legal reserve requirement?

A) $2.700 million
B) $1.449 million
C) $5.927 million
D) $4.170 million
E) None of the options is correct