The following net transaction accounts have been documented by a bank for the computation of its reserve requirements
(in millions). (LG 13-4)
Tuesday 11th Wednesday 12th Thursday 13th Friday 14th Monday 17th Net transaction accounts
$300 $250 $280 $260 $280 Tuesday 18th Wednesday 19th Thursday 20th Friday 21st Monday 24th Net transaction accounts
$300 $270 $260 $250 $240 The average daily reserves at the Fed for the 14-day reserve maintenance period have been $22.7 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?
b. Is the bank in compliance with the requirements?

AppendixLO1