What percentage of a bank’s transaction account funds does the reserve

QUESTION

What percentage of a bank’s transaction account funds does the reserve requirement say must be kept as vault cash or in a Federal Reserve bank account?

A) between 1% and 4%
B) between 3% and 10%
C) between 8% and 15%
D) between 10% and 20%
E) between 18% and 33%

ANSWER

Answer: B
Explanation: B) The reserve requirement says that a bank must reserve as vault cash or in a Federal Reserve bank account between 3% and 10% of its transaction account funds.