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. Friday Tuesday Monday 6/12 Wednesday 6/14 Thursday 6/15 6/16 6/13 $290 $270 $280 $320 D.Deposits $300 $17 $18 $28 $29 $29 Reserves 6/22 6/23 6/19 6/20 6/21 $305 $320 $340 $310 $310 D.Deposits $29 $28 $29 $15 $31 Reserves 6/26 6/27 6/28 6/30 6/29 $240 $250 $270 $230 $260 D. Deposits Reserves $19 $19 $21 $19 $24 7/3 7/4 7/5 7/6 777 $300 $320 $290 $270 D.Deposits Reserves $280 $27 $27 $26 $24 $22) 7/10 7/11 7/12 7/13 7/14 D.Deposits $310 $305 S340 $310 $320 $20 Reserves S21 $21 $17 $18 7/17 7/18 7/19 7/20 7/21 $240 $230 $250 S260 $270 D. Deposits Reserves $31 $29 $28 $29 $15 7/24 7/25 7/26 7/27 7/28 $300 $320 $280 S290 $270 D.Deposits Reserves S19 S19 $21 $19 $241 7/31 8/1 8/2 8/3 8/4 D.Deposits $310 $305 $320 $340 $310 Reserves $23 $22 $24 $22 $23 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. (5 points) Is the bank in compliance with the requirements