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 SII Wednesday 11th 5250 $9 Wednesday 18th $340 Net Transaction Accounts Reserves at Fed Net Transaction Accounts Reserves at Fed $6 Wednesday 25th $150 Net Transaction Accounts Reserves at Fed December Monday 2nd S230 SIO Monday 9th SI70 SII Monday 16 S210 S8 Monday 23th $2.50 59 Monday 30th $340 S11 Monday 7th $280 SI2 Monday 14 SI 70 59 Monday 21th S190 SII Tuesday 3rd S220 59 Tuesday 10th S250 SIZ Tuesday 17th S310 S7 Tuesday 24th S270 S8 Tuesday Ist S350 SI2 Tuesday 8th $290 SII Tuesday 15th S200 SR Tuesday 22th S280 S14 $4 Thursday Sth S190 S8 Thursday 12th $220 SS Thursday 19th S180 SS Thursday 26th $250 S5 Thursday 3rd $240 SIO Thursday 10th $310 59 Thursday 17th S290 57 Thursday 24th S220 S8 Friday 6th S220 S7 Friday 13th S280 S6 Friday 20th S160 S6 Friday 27th S280 S7 Friday 4th S220 S9 Friday 11th S310 S8 Friday 18th S280 SS Friday Net Transaction Accounts Reserves at Fed Net Transaction Accounts Reserves at Fed Wednesday 2nd $250 SII Wednesday 9th $310 S10 Wednesday 16th $320 SS Wednesday 23th $250 59 Net Transaction Accounts Reserves at Fed 250 Net Transaction Accounts Reserves at Fed S200 S7 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) c) 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 SII Wednesday 11th 5250 $9 Wednesday 18th $340 Net Transaction Accounts Reserves at Fed Net Transaction Accounts Reserves at Fed $6 Wednesday 25th $150 Net Transaction Accounts Reserves at Fed December Monday 2nd S230 SIO Monday 9th SI70 SII Monday 16 S210 S8 Monday 23th $2.50 59 Monday 30th $340 S11 Monday 7th $280 SI2 Monday 14 SI 70 59 Monday 21th S190 SII Tuesday 3rd S220 59 Tuesday 10th S250 SIZ Tuesday 17th S310 S7 Tuesday 24th S270 S8 Tuesday Ist S350 SI2 Tuesday 8th $290 SII Tuesday 15th S200 SR Tuesday 22th S280 S14 $4 Thursday Sth S190 S8 Thursday 12th $220 SS Thursday 19th S180 SS Thursday 26th $250 S5 Thursday 3rd $240 SIO Thursday 10th $310 59 Thursday 17th S290 57 Thursday 24th S220 S8 Friday 6th S220 S7 Friday 13th S280 S6 Friday 20th S160 S6 Friday 27th S280 S7 Friday 4th S220 S9 Friday 11th S310 S8 Friday 18th S280 SS Friday Net Transaction Accounts Reserves at Fed Net Transaction Accounts Reserves at Fed Wednesday 2nd $250 SII Wednesday 9th $310 S10 Wednesday 16th $320 SS Wednesday 23th $250 59 Net Transaction Accounts Reserves at Fed 250 Net Transaction Accounts Reserves at Fed S200 S7 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) c) 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)