A commercial bank has provided the following financial information.

Average daily net transaction accounts balance during the reserve computation period $732.45 M

Average daily reserves held with the Federal Reserve during the reserve maintenance period 45.93 M

Average daily vault cash during the reserve maintenance period 16.82 M

Reserve carry forward 0 M

a. Calculate the amount of reserves that bank must maintain with the Federal Reserve.

b. Is the bank undershooting or overshooting the reserve target? Support your response.