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 is the average daily reserve required to be held by the bank for their demand deposits during the maintenance period? Suppose that the rules require no reserves for the first $14.5 million,3 percent for amounts between $14.5 million and $103.6 million,and 10 percent thereafter.
A)$24.285 million.
B)$28.862 million.
C)$29.555 million.
D)$21.913 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 is the average daily reserve required to be held by the bank for their demand deposits during the maintenance period? Suppose that the rules require no reserves for the first $14.5 million,3 percent for amounts between $14.5 million and $103.6 million,and 10 percent thereafter.
A)$24.285 million. 
B)$28.862 million. 
C)$29.555 million. 
D)$21.913 million.

Quizplus · Accepted Answer

11efbabc_3f1c_45fe_8e22_0d3a55c75b94_TB1314_00

The Following Demand Deposits and Cash Reserves at the Fed