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

question 52

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.

The minimum reserves that may be maintained toward the next reserve maintenance period,September 23 to October 6,is

• A)$33.3170 million.
• B)$38.2470 million.
• C)$39.0073 million.
• D)$35.0876 million.

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Definitions:

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most occurrences take place in the middle of the range.

Probability

The measure or estimation of how likely it is that an event will occur, expressed as a number between 0 (impossible) and 1 (certain).

Median

A statistical measure that represents the middle value in a given set of data when it is arranged in numerical order.

Mean

A statistical measure representing the central value of a set of numbers, calculated by dividing the sum of the values in the set by their number.