Suppose the Fed pays no interest on bank reserves. For every $1000 in deposits, how much do banks lose in forgone interest due to the reserve requirement (after rounding to the nearest two decimal place) if the reserve requirement is 11% and the rate at which banks lend is 7% ? A. 110 B. 70 C. 77 D. 7.7 If the interest rate on the loans increases, then the opportunity cost of the reserves