Average reserve balance at the federal reserve bank

Assignment Help Finance Basics
Reference no: EM131717874

Question: A U.S. savings bank has a daily average reserve balance at the Federal Reserve bank in its district of $25 million during the latest reserve maintenance period. Its vault cash holdings averaged $1 million and the savings bank's total transaction deposits (net of interbank deposits and cash items in collection) averaged $200 million daily over the latest reserve maintenance period. Does this depository institution currently have a legal reserve deficiency? How would you recommend that its management respond to the current situation?

Reference no: EM131717874

Questions Cloud

Have you ever witnessed the use of statistics at work : Think about your work experiences. Have you ever witnessed the use of statistics at work?
How do attorneys use impression management : How do attorneys use impression management either inside or outside of the courtroom
Find the probability that less than 10 minutes will elapse : Between 11 p.m. and midnight on Thursday night, Mystery Pizza gets an average of 5.2 telephone orders per hour.
What motivated the theorist to write the theory : What are the main relationships between the concepts - What was going on in the profession of nursing or in American society that may have influenced
Average reserve balance at the federal reserve bank : A U.S. savings bank has a daily average reserve balance at the Federal Reserve bank in its district of $25 million during the latest reserve maintenance period.
What was the depreciation for the first year : Equipment was acquired at the beginning of the year at a cost of $40,750. What was the depreciation for the first year
What is the opposing viewpoint : What is the issue (must in the form of a "yes or no" question)?What is the author's viewpoint: PRO or CON (circle one).
Discuss drives home fully pumped with caffeine : Tim drinks an extra large cappuccino just before leaving work and drives home fully pumped with caffeine
How much bank have available in credits at the frb : Suppose a bank maintains an average clearing balance of $5 million during a period in which the Federal funds rate averages 6 percent.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd