Question
First Savings reported transaction deposits of $95 million (the daily average for the latest two-week reserve computation period). Its non-personal time deposits over the most
First Savings reported transaction deposits of $95 million (the daily average for the latest two-week reserve computation period). Its non-personal time deposits over the most recent reserve computation period averaged $37 million daily, while the vault cash average $0.95 million over the vault-cash computation period. Assume that reserve requirements are 0% for transaction deposits $0 to $13.3 million, 3% for transaction deposits $13.3 million to $89 million, and 10% for transaction deposits over $89 million. Also, assume time deposits carry a 0% required to reserve. Calculate this savings institutions required daily average reserve balance at the Federal Reserve Bank in the district.
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