Question
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 |
- 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!
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