3.

3. 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. Monday Wednesday Thursday Friday Tuesday 6/13 6/12 6/14 6/15 6/16 D.Deposits $300 $280 $290 $270 $320 $29 Reserves $28 $29 $17 SIB 6/19 6/20 6/21 6/22 6/23 D.Deposits $310 $305 $320 $340 $310 Reserves $31 $29 $28 $29 S15 6/26 6/27 6/28 6/29 6/30 D.Deposits $240 $230 $250 S260 $2701 Reserves $19 $19 $21 $19 $24 7/3 7/4 775 7/6 777 D. Deposits $300 S320 $280 S290 S270 Reserves $27 $26 S22 S24 S22 7/10 7/11 7/12 7/13 7/14 D.Deposits $310 $305 $320 S340 $310 Reserves $21 $21 $20 $12 S18 7/17 7/18 7/19 7/20 7/21 D. Deposits $240 S230 $250 S260 $270 Reserves $31 $29 S28 $29 SIS 7/24 7125 7/26 7/27 7/28 D.Deposits $300 S320 $280 S290 S2701 Reserves $19 $19 $21 $19 S24 7/31 8/1 8/2 8/3 8/4 D. Deposits $310 S305 S320 $340 S310 Reserves S23 $22 524 S22 S23 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. Is the bank in compliance with the requirements