Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Federal Reserve has collected the following information on four banks during their most recent computation period. Use this information to answer the following questions.

The Federal Reserve has collected the following information on four banks during their most recent computation period. Use this information to answer the following questions.

Progressive Requirement

0-$15.2 million, 0% requirement

$15.2 - $110.2 million, 3% requirement

$110.2 million and up, 10% requirement

Value Bank A Bank B Bank C Bank D
Average daily net transaction deposits (millions) $1,211 $391 $743 $599
Vault Cash $42 $12 $28 $21
Deposits at Federal Reserve $81 $17 $41 $37

  1. How much is bank A required to keep on deposit at the Fed during its maintenance period?

** The correct answer is $70.93, however, I am confused because Bank A does not have enough to fit In the progressive requirements. Do not provide me with an answer other than $70.93, this is what is correct according to my professor. Please help me understand!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microfinance Handbook An Institutional And Financial Perspective

Authors: Joanna Ledgerwood

1st Edition

0821343068, 978-0821343067

More Books

Students also viewed these Finance questions

Question

define what is meant by the term human resource management

Answered: 1 week ago