Reserve requirements for banks are currently: Amount of Bank's Reserve Transaction Deposits Requirement The first $6.6 million 0 percent Amounts from $6.6 to $45.4 million 3 percent Amounts over $45.4 million 10 percent Calculate the reserve requirements for three banks with the following amounts of transaction deposits. Calculate both the marginal reserve requirement (the additional amount of required reserves per dollar of additional transaction deposits) and the average reserve requirement (required reserves divided by transaction deposits).
a. $38.8 million
b. $95.6 million
c. $3,400 million