Question
A bank is required to maintain an average daily balance at the Fed of $600 million. In the first 2 days of the maintenance period,
A bank is required to maintain an average daily balance at the Fed of $600 million. In the first 2 days of the maintenance period, it maintains a balance of $450 million, the next three days it maintains a balance of $700 million, the next two days it maintains a balance of $650 million, the next three days it maintains a balance of $450 million, and the next three days it maintains a balance of $650 million. What does its balance at the Fed has to be on the last day of the maintenance period in order to have a zero cumulative reserve deficit?
A. | $600 million |
B. | $400 million |
C. | $500 million |
D. | $800 million |
E. | None of the options is correct
the answer is D, please show steps. |
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