The Following Demand Deposits and Cash Reserves at the Fed

question 48

Multiple Choice

The following demand deposits and cash reserves at the Fed have been documented by a bank for the computation of reserve requirements (in millions) . Note that reserves are vault cash and reserves at the Fed.
-What are the average daily demand deposit balances over the reserve computation period beginning the week of June 12?

• A)$286 million.
• B)$296 million.
• C)$306 million.
• D)$326 million.
• E)$352 million.

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Definitions:

Mutually Exclusive

Events or propositions that cannot both be true or occur at the same time, implying the occurrence of one event excludes the occurrence of the other.

P(A)

The probability of event A occurring.

P(B)

The probability of event B occurring.

Relative Frequency Approach

A method of probability assessment that involves observing the outcomes of a random experiment to estimate the probability of each outcome by dividing the number of times a specific outcome occurs by the total number of trials.