The Table Given Below Records the Amount of New Deposits

The table given below records the amount of new deposits, the value of required reserves, and total amount loaned out by Banks 1, 2, and 3.
Table 12.3
$\begin{array}{l}\begin{array}{|c|c|c|c|}\hline \text { Bank } & \text { New Deposit } & \begin{array}{c}\text { Required } \\\text { Reserves }\end{array} & \text { Loans } \\\hline \text { Bank 1 } & \$ 10,000 & \$ 1,000 & \$ 9,000 \\\hline \text { Bank 2 } & \$ 9,000 & \$ 900 & \$ 8,100 \\\hline \text { Bank 3 } & \$ 8,100 & \$ 810 & \$ 7,290 \\\hline\end{array}\\\text { *Assume all excess reserves are loaned out. }\end{array}$
-Refer to Table 12.3. What is the reserve requirement?

A) 11 percent
B) 90 percent
C) 10 percent
D) 9 percent
E) 19 percent

Correct Answer:

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