The following net transaction accounts have been documented by a bank for the computation of its reserve
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Question:
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 | $ | 400 | $ | 350 | $ | 380 | $ | 360 | $ | 380 | $ | 400 | $ | 370 | $ | 360 | $ | 350 | $ | 340 | ||||||||||
The average daily reserves at the Fed for the 14-day reserve maintenance period have been $33.5 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.
Average daily required reserves__________ million
Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders , Marcia Cornett
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