A Bank Has an Average Balance of Transactions Accounts, August

question 113

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. What is the gross reserve requirement?

• A)$74.653 million.
• B)$78.985 million.
• C)$76.747 million.
• D)$72.461 million.
• E)$77.866 million.

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Definitions:

Stream Channel

The physical confine of a stream (rivulet) consisting of a bed and banks, which confines and directs water flow.

Linear Ridges

Long, narrow elevations of land often formed by tectonic activities such as the folding of the Earth's crust or by the solidification of magma.

Scarp

A steep slope or cliff, typically formed by erosion or faulting.

Refraction

The bending of a wave as it passes at an angle from one medium to another, altering its speed.