A Bank Has an Average Balance of Transactions Accounts,August 10

question 61

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.

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