The following net transaction accounts have been documented by a bank for the computation of its reserve requirements (in millions). Net transaction accounts Tuesday 11th Wednesday Thursday 12th $ 440 $ 390 13th $ 420 Friday 14thMonday 17th $ 400 $ 420 Tuesday 18th Wednesday 19th $ 440 $ 410 Thursday 20th $ 400 Friday 21thMonday 24th $ 390 $ 380 The average daily reserves at the Fed for the 14-day reserve maintenance period have been $37.2 million per day, and the average vault cash for the computation period has been estimated to be $3 million per day. 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 must 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 $1,350.70 million in net transaction accounts is calculated as follows (amounts in millions): Daily average net transaction accounts x Reserve percentage = Daily average reserves required $15.2 $110.2-$15.2 $1,350.7-$110.2 0% $ 0.000 3 2.850 10 124.050 Minimum average reserves to be held $126.900 a. What is the amount of the average daily required reserves to be held by the bank during the maintenance period? b. Is the bank in compliance with the requirements? Complete this question by entering your answers in the tabs below. Required A Required B What is the amount of the average daily required reserves to be held by the bank during the maintenance period? (Do not round your intermediate calculations. Enter your answer in millions rounded to 3 decimal places. (e.g., 32.161)) Average daily required reserves million < Required A Required B >