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

question 54

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.

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Definitions:

Writ of Execution

A court order granting the right to enforce judgment, typically by seizing and selling the debtor's property to satisfy a debt.

Garnishment

A legal process whereby a creditor can collect what a debtor owes by requiring a third party to turn over the debtor's assets under their control.

Limited Jurisdiction

A court's authority to hear only certain types of cases, often defined by law, subject matter, or monetary value.

Appellate Courts

Courts that review and revise the outcome of cases previously decided by lower courts if an error in the application of the law is claimed.