What Is the Average Daily Reserve Required to Be Held

question 35

Multiple Choice

What is the average daily reserve required to be held by the bank for their demand deposits during the maintenance period? Suppose that the rules require no reserves for the first $14.5 million, 3 percent for amounts between $14.5 million and $103.6 million, and 10 percent thereafter.

• A)$24.285 million.
• B)$28.862 million.
• C)$29.555 million.
• D)$21.913 million.
• E)$32.069 million. [Refer to: 18-120]

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Unilateral Contract

A contractual agreement in which one party makes a promise in return for an act by another party.

Offeror

The offeror is the party in a contract who presents the terms of the offer to another party for acceptance, potentially leading to an agreement.

Performance

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A legally enforceable agreement between two or more parties that is bound by law.