If a bank has $10 million on deposit, and the Federal Reserve specifies a reserve requirement of 30 percent, then how much money would the bank need to keep on hand at all times?

The amount of money which the bank need to hand all times is $7 million

Explanation:

The amount of money which the bank need to hand all times is computed as:

First computing the amount of reserve as:

Reserve amount = Deposit amount * Reserve requirement percent

where

Deposit amount is $10 million

Reserve requirement percent is 30%

Putting the values above:

Reserve amount = $10 million * 30%

Reserve amount = $3 million

Now, computing the amount of money which bank need to hand:

Amount of money = Deposit amount - Reserve amount

Amount of money = $10 million - $3 million

Amount of money = $7 million