18-131 If over the first 12 days of the current reserve maintenance period the average daily reserve held were $37 million,what does the bank need to hold as reserves over the last two days to meet the maximum reserve?

Question

Quizplus · Accepted Answer

To find the reserves needed for the last two days, calculate the total reserves required for the 14-day period and subtract the reserves already held. If the average daily reserve for 12 days is $37 million, the total for 12 days is $444 million. Assuming the maximum reserve requirement is $580 million (14 days x $41.4286 million per day), the bank needs $136 million more. The closest option is $135.690 million.

18-131 If Over the First 12 Days of the Current