14) The following net transaction accounts and cash reserves at the Federal Reserve have been documented by a bank for computation of its reserve requirements in millions) under lagged reserve accounting. November Net Transaction Accounts Reserves at Fed Wednesday 4th $200 Friday 6th $220 Monday 2nd S230 $10 Monday 9th $170 Tuesday 3rd $220 $9 Tuesday 10th $250 Net Transaction Accounts Reserves at Fed $11 $12 Tuesday 17th $310 Net Transaction Accounts Reserves at Fed Monday 161 $210 S8 Monday 23th $250 99 Monday 30th $340 $11 Monday 7th S230 $12 Monday Net Transaction Accounts Reserves at Fed December Friday 13th $280 $6 Friday 20th $160 $6 Friday 27th $280 $7 Friday Thursday Sth $190 S8 Thursday 12th $220 S5 Thursday 19th $180 SS Thursday 26th S250 S5 Thursday 3rd $240 $10 Thursday 10th $310 S9 Thursday 17th $290 $7 Thursday 24th $220 SS Wednesday Ilth $250 $9 Wednesday 18th $340 $6 Wednesday 25th $150 $4 Wednesday 2nd $250 $11 Wednesday 9th $310 $10 Wednesday 16th $320 $5 Wednesday 23th $250 $9 Tuesday 24th $270 $8 Tuesday Ist $350 $12 Tuesday 8th $290 $11 Tuesday 15th $200 $8 Tuesday 22th $280 $14 Net Transaction Accounts Reserves at Fed Net Transaction Accounts Reserves at Fed $220 59 Friday 11th $310 $8 Friday 18th $280 55 Friday 25 $200 Net Transaction Accounts Reserves at Fed $170 $9 Monday 21th $190 Net Transaction Accounts Reserves at Fed $11 Suppose we are focusing on the computation period beginning on November 10th. The average vault cash for this computation period is $3 million per day. a) What are the average daily net transaction accounts over the computation period? (2 points) b) What level of average daily reserves is required to be held by the bank with the Federal Reserve during the corresponding maintenance period? (2 points) ) Do the bank's reserves at the Federal Reserve during the maintenance period meet the reserve requirements? Suppose there are no previous reserve deficits carried over. (2 points) d) What is the lowest level of reserves at the Federal Reserve the bank can hold without penalty? (2 points) 14) The following net transaction accounts and cash reserves at the Federal Reserve have been documented by a bank for computation of its reserve requirements in millions) under lagged reserve accounting. November Net Transaction Accounts Reserves at Fed Wednesday 4th $200 Friday 6th $220 Monday 2nd S230 $10 Monday 9th $170 Tuesday 3rd $220 $9 Tuesday 10th $250 Net Transaction Accounts Reserves at Fed $11 $12 Tuesday 17th $310 Net Transaction Accounts Reserves at Fed Monday 161 $210 S8 Monday 23th $250 99 Monday 30th $340 $11 Monday 7th S230 $12 Monday Net Transaction Accounts Reserves at Fed December Friday 13th $280 $6 Friday 20th $160 $6 Friday 27th $280 $7 Friday Thursday Sth $190 S8 Thursday 12th $220 S5 Thursday 19th $180 SS Thursday 26th S250 S5 Thursday 3rd $240 $10 Thursday 10th $310 S9 Thursday 17th $290 $7 Thursday 24th $220 SS Wednesday Ilth $250 $9 Wednesday 18th $340 $6 Wednesday 25th $150 $4 Wednesday 2nd $250 $11 Wednesday 9th $310 $10 Wednesday 16th $320 $5 Wednesday 23th $250 $9 Tuesday 24th $270 $8 Tuesday Ist $350 $12 Tuesday 8th $290 $11 Tuesday 15th $200 $8 Tuesday 22th $280 $14 Net Transaction Accounts Reserves at Fed Net Transaction Accounts Reserves at Fed $220 59 Friday 11th $310 $8 Friday 18th $280 55 Friday 25 $200 Net Transaction Accounts Reserves at Fed $170 $9 Monday 21th $190 Net Transaction Accounts Reserves at Fed $11 Suppose we are focusing on the computation period beginning on November 10th. The average vault cash for this computation period is $3 million per day. a) What are the average daily net transaction accounts over the computation period? (2 points) b) What level of average daily reserves is required to be held by the bank with the Federal Reserve during the corresponding maintenance period? (2 points) ) Do the bank's reserves at the Federal Reserve during the maintenance period meet the reserve requirements? Suppose there are no previous reserve deficits carried over. (2 points) d) What is the lowest level of reserves at the Federal Reserve the bank can hold without penalty? (2 points)