A Bank Has an Average Balance of Transactions Accounts, August

question 53

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 maximum reserve?

• A)$125.552 million.
• B)$111.453 million.
• C)$135.690 million.
• D)$141.914 million.
• E)$129.110 million.

---

Definitions:

Marx's Theory

A social, political, and economic philosophy named after Karl Marx, which examines the effect of capitalism on labor, productivity, and economic development and argues for a worker revolution to overturn capitalism in favor of communism.

Weber's Theory

Max Weber's sociological framework that emphasizes the importance of social actions and the structures of society, including class, status, and power.

Subjective Meanings

Refers to the personal, internal interpretations and understandings individuals have about the world around them.

Functionalist Theory

A sociological perspective that emphasizes the societal structures that contribute to stability and functionality within a society.