Suppose the reserve requirement is currently 20% Instructions: Enter your answers as a whole number. a. Assume First Bank has deposits of $120 million. Calculate the required reserves for First Bank. 24 million b. At the end of the day, First Bank has $28 million of reserves. Will First Bank be a borrower or lender in the federal funds market? First Bank will: lend v reserves of $ 4 million in the federal funds market. [Click to select) lend borrow