Problem 13-5 (LG 13-4) The following net transaction accounts have been...
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Finance
Problem 13-5 (LG 13-4)
The following net transaction accounts have been documented by a bank for the computation of its reserve requirements (in millions).
Tuesday 11th
Wednesday 12th
Thursday 13th
Friday 14th
Monday 17th
Tuesday 18th
Wednesday 19th
Thursday 20th
Friday 21th
Monday 24th
Net transaction accounts
$300
$250
$280
$260
$280
$300
$270
$260
$250
$240
The average daily reserves at the Fed for the 14-day reserve maintenance period have been $22.7 million per day, and the average vault cash for the computation period has been estimated to be $2 million per day.
a.
What is the amount of the average daily required reserves to be held by the bank during the maintenance period? (Enter your answer in millions rounded to 3 decimal places. (e.g., 32.161))
Average daily required reserves
$ million
b.
Is the bank in compliance with the requirements?
Yes
No
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