The ABC Bank starts the day with $965,000 in its reserve account. During the day it has $300,000 in checks written by its customers cleared, $225,000 in deposited checks cleared, and returns $150,000 in cash to the Fed. How much does ABC have in its reserve account at the end of the day?

Question

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The bank starts with $965,000. It loses $300,000 due to checks cleared, gains $225,000 from deposited checks, and loses $150,000 in cash returned to the Fed. The calculation is $965,000 - $300,000 + $225,000 - $150,000 = $740,000.

The ABC Bank Starts the Day with $965,000 in Its