City Bank has estimated that its average daily net transaction accounts balance over the recent 14-day computation period was $235 million. The average daily balance with the Fed over the 14-day maintenance period was $9 million, and the average daily balance of vault cash over the two-week computation period was $6 million. EXAMPLE 13-2 Computation of Daily Average Required Reserves Consider ABC Bank's reserve manager, who wants to assess the bank's minimum cash reserve requirement target. The manager knows the bank's net transaction accounts balance at the close of the banking day on each of the 14 days over the period Tuesday, June 30, to Monday, July 13. Consider the realized net transaction account positions of ABC Bank in Table 13-13 The minimum daily average reserves that a bank must maintain is computed as a percentage of the daily average net transaction accounts held by the bank over the two-week computation period, where Friday's balances are carried over for Saturday and Sunday. The minimum daily average for ABC Bank to hold against the daily average of $1,350.70 million in net transaction accounts is calculated as follows amounts in millions): Daily average net transaction accounts Reserve percentage = Daily average reserves required $15.2 0% $ 0.000 $110.2-$15.2 3 2.850 10 124.050 $1,350.7-$110.2 Minimum average reserves to be held $126.900 a. Under the rules effective in 2016, what is the amount of average daily required reserves to be held at the Fed during the reserve maintenance period for these demand deposit balances? b. What is the average daily balance of reserves held by the bank over the maintenance period? By what amount were the average reserves held higher or lower than the required reserves? c. If the bank had transferred $28 million of its deposits every Friday over the two-week computation period to one of its off-shore facilities, what would be the revised average daily reserve requirement? Complete this question by entering your answers in the tabs below. Required A Required B Required C Under the rules effective in 2016, what is the amount of average daily required reserves to be held at the Fed during the reserve maintenance period for these demand deposit balances? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places. (e.g., 32.161)) Average daily reserve required million