Question: First Savings of Rainbow Iowa reported transaction deposits of 75
First Savings of Rainbow, Iowa, reported transaction deposits of $75 million (the daily average for the latest two-week reserve computation period). Its nonpersonal time deposits over the most recent reserve computation period averaged $37 million daily, while vault cash averaged $5 million. Assuming that reserve requirements on transaction deposits are 3 percent for deposits over $10.7 million and up to $58.8 million and 10 percent for all transaction deposits over $58.8 million while time deposits carry a 3 percent required reserve, calculate this savings institution’s required daily average reserve balance.
Answer to relevant QuestionsElton Harbor Bank has a cumulative legal reserve deficit of $44 million as of the close of business this Tuesday. The bank must cover this deficit by the close of business tomorrow (Wednesday). Charles Tilby, the bank's ...What are the major types of deposit plans that depository institutions offer today?What factors do household depositors rank most highly in choosing a financial firm for their checking account? Their savings account? What about business firms?Kalewood Savings Bank has experienced recent changes in the composition of its deposit. What changes have recently occurred in Kalewood’s deposit mix? Do these changes suggest possible problems for management in trying to ...Hillside Savings Association has an excess balance of $35 million in a deposit at its principal correspondent, Sterling City Bank, and instructs the latter institution to loan the funds today to another institution, ...
Post your question