A Bank Has an Average Balance of Transactions Accounts, August

question 37

Multiple Choice

A bank has an average balance of transactions accounts, August 10 to 23, of $824.46 million.The average balance in the cash account is $42.014 million over this period.The bank is carrying forward a deficit of $1.276 million from the last reserve period.The rules require no reserves to be maintained for the first $8.5 million, 3 percent for amounts between $8.5 million and $45.8 million, and 10 percent thereafter. If over the first 12 days of the current reserve maintenance period the average daily reserve held were $37 million, what does the bank need to hold as reserves over the last two days to meet the minimum reserve?

• A)$33.92 million.
• B)$41.23 million.
• C)$51.19 million.
• D)$47.23 million.
• E)$46.05 million.

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Definitions:

Quality Commitment

A pledge or an obligation undertaken by a company to uphold high standards in its products or services.

Job Satisfaction

The level of fulfillment, contentment, and happiness that an individual experiences in their job.

High Level

Pertaining to activities or decisions that involve overarching goals, strategies, or priorities, often affecting an entire organization.

Behavioural Discontent

A state of dissatisfaction or unrest expressed through behavior, often as a response to perceived inequities or unmet expectations.