18-115 What Is the Average Daily Reserve Required to Be

question 107

Multiple Choice

18-115 What is the average daily reserve required to be held by the bank for their demand deposits during the maintenance period? Suppose that the rules require no reserves for the first $5.5 million,3 percent for amounts between $5.5 million and $42.8 million,and 10 percent thereafter.

• A)$26.44 million.
• B)$28.86 million.
• C)$29.55 million.
• D)$31.56 million.
• E)$32.06 million.

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Definitions:

Purchase

The act of obtaining goods or services, often in exchange for money, as part of business operations or personal consumption.

Sale

The act of selling goods or services in exchange for money or other compensation.

Polk Common Stock

A fictional example, likely referring to shares of common stock issued by a company named "Polk."

Purchase

The act of buying goods or services, often reflected in the financial transactions of a business.