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:

Population Mean

The average of a set of numerical values of an entire population.

Observations

Data collected during an experiment or survey; each observation represents an individual unit of measured data.

Confidence Levels

The probability or percentage that specifies how confident one can be in the method used to construct a confidence interval estimate of a population parameter.

Confidence Intervals

Ranges of values, based on sample data, that are used to estimate the likelihood of containing the population parameter of interest within a specified level of certainty.