The Average Daily Net Transaction Accounts of a Local Bank

question 54

Multiple Choice

The average daily net transaction accounts of a local bank during the most recent reserve computation period is $687 million. The amount of average daily reserves at the Fed during the reserve maintenance period is $35.23 million,and the average daily vault cash corresponding to the maintenance period is $12.74 million. Is this bank in compliance with reserve requirements?

• A)Yes,the bank has excess daily reserves of $2.45 million.
• B)Yes,the bank has excess daily reserves of $11.71 million.
• C)No,the bank is short on daily reserves by $12.56 million.
• D)No,the bank is short on daily reserves by $4.36 million.
• E)No,the bank is short on daily reserves by $9.17 million.

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Definitions:

Categorical Variable

A variable that can take on one of a limited, and usually fixed, number of possible values, assigning each individual to a particular group or nominal category.

Quantitative Variable

A type of variable that represents measurable quantities and can be expressed in numeric values.

Time Plots

Charts that display values against time, allowing for the observation of trends, patterns, and seasonal variations in data series.

Explanatory Variable

In statistical modeling, an explanatory variable is one that is manipulated or categorized to assess its effect on a response variable.