The average daily net transaction accounts of a local bank during the most recent reserve computation period is $$343$ million. The

amount of average daily reserves at the Fed during the reserve maintenance period is $$26\mathrm{.}40$ million, and the average daily vault cash

corresponding to the maintenance period is $$5\mathrm{.}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 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 bank mukt 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\mathrm{.}70$ million

in net transaction accounts is calculated as follows $($amounts in millions$)$:

Daily average net

transaction accounts $$ Reserve percentage $=$ Daily average reserves required

a$.$ Under the rules effective in $2020,$ what is the average daily reserve balance required to be held by the bank during the

maintenance period?

b$.$ Is the bank in compliance with the reserve requirements?