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:

Tetrapods

A superclass of animals characterized by four limbs (or the descent from such), including amphibians, reptiles, birds, and mammals.

Extant Species

Refers to species that are currently living and have not gone extinct.

Eusthenopteron

An extinct genus of lobe-finned fish, considered an important precursor to early tetrapods and amphibians.