Suppose the Fed pays no interest on bank reserves. For every $ 2000 in deposits, how much do banks lose in forgone interest due to the reserve requirement (after rounding to the nearest two decimal places) if the reserve requirement is 10% and the rate at which banks lend is 7%?

A.140 B.200 C.14 D.140

If the interest rate on the loans increases, then the opportunity cost of the reserves (remain the same, decline, or rises)