Suppose the reserve requirement is currently 10%. a Assume First Bank has deposits of $90 Million. Calculate the reserves for First Bank. $_______________ million. b. At the end of the day, First bank...

Suppose the reserve requirement is currently 10%.

a Assume First Bank has deposits of $90 Million. Calculate the reserves for First Bank.

$_______________ million.

b. At the end of the day, First bank has $8 million of reserves. Will be a borrower or lender in the federal funds market?

First bank will __________________ reserves of $____________ million in the federal funds market.