AutoSave OFF O 2 C ... ReserveReqsHw.Spring2022 (1) - Compatibility Mode Mailings Review View Tell me Home Insert Draw Design Layout References Le Share Comments Arial v 12 X LC vi A Aav = = 2 Aalbedly Aalb edt Aa BbCcD AaBbCcDc AaBbCcD haec E Paste Normal BIU ab X B x x Av A No Spacing Heading 1 Title Heading 2 Editor Y Styles Pane 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 over the past two week maintenance period. During the maintenance period the bank held $195 million in reserve deposits with the Fed. The bank had a dally average reserve deficiency during the previous maintenance period of $6.5 million, which was within the allowable four percent limit. Hawkeye National Bank's daily average transactions accounts for the base computation periods along with other selected information are listed below: Daily Average (millions of dollars) : Transactions accounts 3,257.9 Balances due from U.S. depositories 365.5 C.L.P.C. 251.8 Vault Cash 28.255 a. Calculate the bank's Gross Reserve Requirement (using the hypothetical 1/1/2022 Fed requirements - as given in Lecture Notes). b. Calculate the bank's Net Reserve Requirement. c. Did Hawkeye National Bank meet its required reserve target? Explain, d. If the bank had carried forward a reserve surplus of $2.1 million (instead of the deficiency, would the bank have met its target? Explain. Page 1 of 1 195 words * English (United States) Focus E 100% AutoSave OFF O 2 C ... ReserveReqsHw.Spring2022 (1) - Compatibility Mode Mailings Review View Tell me Home Insert Draw Design Layout References Le Share Comments Arial v 12 X LC vi A Aav = = 2 Aalbedly Aalb edt Aa BbCcD AaBbCcDc AaBbCcD haec E Paste Normal BIU ab X B x x Av A No Spacing Heading 1 Title Heading 2 Editor Y Styles Pane 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 over the past two week maintenance period. During the maintenance period the bank held $195 million in reserve deposits with the Fed. The bank had a dally average reserve deficiency during the previous maintenance period of $6.5 million, which was within the allowable four percent limit. Hawkeye National Bank's daily average transactions accounts for the base computation periods along with other selected information are listed below: Daily Average (millions of dollars) : Transactions accounts 3,257.9 Balances due from U.S. depositories 365.5 C.L.P.C. 251.8 Vault Cash 28.255 a. Calculate the bank's Gross Reserve Requirement (using the hypothetical 1/1/2022 Fed requirements - as given in Lecture Notes). b. Calculate the bank's Net Reserve Requirement. c. Did Hawkeye National Bank meet its required reserve target? Explain, d. If the bank had carried forward a reserve surplus of $2.1 million (instead of the deficiency, would the bank have met its target? Explain. Page 1 of 1 195 words * English (United States) Focus E 100%
