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City Bank has estimated that its average daily net transaction accounts balance over the recent 14-day computation period was $255.50 million The average daily balance

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City Bank has estimated that its average daily net transaction accounts balance over the recent 14-day computation period was $255.50 million The average daily balance with the Fed over the 14-day maintenance period was $10 million, and the average daily balance of vauit cash over the two week computation period was $7 million EXAMPLE 13-2 Computation of Dally 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 bal ance 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 13-25 The minimum daily average reserves that a bankrupt maintain computed as a percentage of the daily average net transactions.coms 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 werage of 1.390.70 million in ne transaction accounts is calculated as follows famounts in millions Daily average net transaction accounts x Reserve percentage = Daily average reserves coquired 50000 51102-5132 2850 51.350,7-51102 124050 Minimum age reserves the head S00 5152 3 10 a. Under the rules effective in 2020, what is the amo hit of average daily reserves required to be held 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 montenance period? By what amount were the average reserves held higher or lower than the required reserves? c. If the bank hod transferred $35 million of its deposits every Friday over the two-week computation perlod to one of its offanore focilitieswhat would be the revised overage daily reserve requiremem? a. Under the rules effective in 2020, what is the amount of average dally reserves required to be held 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 $35 million of its deposits every Friday over the two-week computation period to one of its offshore 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 Under the rules effective in 2020, what is the amount of average daily reserves required to be held during the reserve maintenance period for these demand deposit balances? (Do not found intermediate calculations. Enter your answer in millions rounded to 3 decimal places. (e.9. 32.161)) Average daily reserve required million Required B > a. Under the rules effective in 2020, what is the amount of average daily reserves required to be held during the reserve maintenan 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 $35 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 Requiredo Required 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? (Input the amount as a positive value. Enter your answers in millions rounded to 3 decimal places. (6.9. 32:161)) Average daily balance of reserves held The average reserves were Higher million milion by .. Under the rules effective in 2020, what is the amount of average daily reserves required to be held 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 $35 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 If the bank had transferred $35 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 dally reserve requirement? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places. (0.9., 32.161)) Revised average daily reserve requirements million (Required B

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