Answer:
$3 million
Explanation:
The reserve requirement is the fraction of all deposited liabilities that a bank must have on hand at all times instead of investing. If the Federal Reserve specifies a 30% requirement and the bank has $10 million on deposit, the amount needed at the bank, at all times, is:
[tex]R=\$10*0.3\\R=\$3\ million[/tex]
The bank must have a reserve of $3 million
