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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Definitions:

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Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be enforceable, such as contracts for the sale of real estate or agreements not to be performed within a year.

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The sale of goods refers to the transaction between a seller and a buyer where specific goods are transferred from the seller to the buyer for a price.

Statute of Frauds

A legal principle that requires certain contracts to be in writing and signed by the parties involved, to be enforceable.