At the close of business on Wednesday, Gene Wandling was reviewing whether Hawkeye National Bank was successful in meeting its legal reserve requirements at the Federal Reserve. The bank had just completed the two-week reserve maintenance period, during which it held a daily average of $338 million in reserve deposits with the Federal Reserve. The bank had a daily average reserve surplus the previous maintenance period of $3.75 million, all of which was within the allowable limit. Hawkeye National Bank's daily average net transactions accounts are $3,257. Hawkeye National Bank could use daily average vault cash holdings of $32.2 million to offset its reserve requirement. (Assume 10% of current reserve requirement is allowed to carry forward.)

a) Using the reserve percentages in the following table, calculate the bank's daily minimum and maximum average required reserve holdings during the maintenance period. (6 points)

b) Did Hawkeye meet its reserve target? How much is the difference? (3 points) c) If the bank had carried forward a daily reserve deficiency of $2.1 million instead of a surplus, would it have met its target? What's the new minimum reserve requirement? (3 points)