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Bank Reserve Requirement I am having trouble figuring out how to complete this. Can someone show how/explain the process: At the close of business on

Bank Reserve Requirement

I am having trouble figuring out how to complete this. Can someone show how/explain the process:

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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 Fed. The bank had just completed the 2-week reserve maintenance period, during which it held a daily average of $238 million in reserve deposits with the Fed. The bank had a daily average reserve deficiency the previous maintenance period of $3.75 million, which was within the allowable 45. Hawkeye National Bank's daily average net transactions accounts for the base computation period along with balances for selected assets are listed below: Net transaction accounts: $3, 257 Demand deposits due from US depository institutions: $366 Cash items in process of collection: $181 Hawkeye National Bank could use daily average vault cash holdings of $31 million to offset its reserve requirement. Using the reserve percentages from Exhibit 11.3 (see below), calculate the bank's daily average requires reserve holdings during the maintenance period. Did Hawkeye meet its reserve target? If the bank had carried forward a daily reserve surplus of $2.1 million instead of a deficiency would it have met its target? What are the costs to a bank if its reserves fall outside the target range? 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 Fed. The bank had just completed the 2-week reserve maintenance period, during which it held a daily average of $238 million in reserve deposits with the Fed. The bank had a daily average reserve deficiency the previous maintenance period of $3.75 million, which was within the allowable 45. Hawkeye National Bank's daily average net transactions accounts for the base computation period along with balances for selected assets are listed below: Net transaction accounts: $3, 257 Demand deposits due from US depository institutions: $366 Cash items in process of collection: $181 Hawkeye National Bank could use daily average vault cash holdings of $31 million to offset its reserve requirement. Using the reserve percentages from Exhibit 11.3 (see below), calculate the bank's daily average requires reserve holdings during the maintenance period. Did Hawkeye meet its reserve target? If the bank had carried forward a daily reserve surplus of $2.1 million instead of a deficiency would it have met its target? What are the costs to a bank if its reserves fall outside the target range

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