The following demand deposits and cash reserves at the Fed have been documented by a bank for the computation of reserve requirements (in millions). Note that reserves are vault cash and reserves at the Fed.

-What are the average daily demand deposit balances over the reserve computation period beginning the week of June 12?
A)$286 million.
B)$296 million.
C)$306 million.
D)$326 million.

Question

The following demand deposits and cash reserves at the Fed have been documented by a bank for the computation of reserve requirements (in millions). Note that reserves are vault cash and reserves at the Fed.
 
-What are the average daily demand deposit balances over the reserve computation period beginning the week of June 12?
A)$286 million. 
B)$296 million. 
C)$306 million. 
D)$326 million.

Quizplus · Accepted Answer

Reserve computation period begins on Tuesday, ends on Monday two weeks later.
Average balance of demand deposits = [320+ 280 + 290 + (3 F1F1F1S1F1F1F10 270)+ 310 + 305 + 320 + 340 + (3 F1F1F1S1F1F1F10 310)+ 240]/14 days = $296.

The Following Demand Deposits and Cash Reserves at the Fed