Question
The following net transaction accounts have been documented by a bank for the computation of its reserve requirements (in millions). Tuesday 11th Wednesday 12th Thursday
The following net transaction accounts have been documented by a bank for the computation of its reserve requirements (in millions).
| Tuesday 11th | Wednesday 12th | Thursday 13th | Friday 14th | Monday 17th | Tuesday 18th | Wednesday 19th | Thursday 20th | Friday 21th | Monday 24th | |||||||||||||||||||||
| Net transaction accounts | $ | 470 | $ | 420 | $ | 450 | $ | 430 | $ | 450 | $ | 470 | $ | 440 | $ | 430 | $ | 420 | $ | 410 | ||||||||||
The average daily reserves at the Fed for the 14-day reserve maintenance period have been $39.5 million per day, and the average vault cash for the computation period has been estimated to be $1 million per day. 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?
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Surviving An IRS Tax Audit
Authors: Frederick W. Daily
3rd Edition
1413318649, 978-1413318647
