Held by the bank during the maintenance period

Assignment Help Financial Management

Reference no: EM132045894

The following net transaction accounts have been documented by a bank for the computation of its reserve requirements (in millions). Tuesday 11th Wednesday 12th Thursday 13th Friday 14th Monday 17th Tuesday 18th Wednesday 19th Thursday 20th Friday 21th Monday 24th Net transaction accounts $390 $340 $370 $350 $370 $390 $360 $350 $340 $330 The average daily reserves at the Fed for the 14-day reserve maintenance period have been $32.4 million per day, and the average vault cash for the computation period has been estimated to be $1 million per day. a. What is the amount of the average daily required reserves to be held by the bank during the maintenance period? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places. (e.g., 32.161)) Average daily required reserves $ million.

Reference no: EM132045894

Questions Cloud

Major influencing body of monetary policy : The Federal Reserve is the major influencing body of monetary policy.

What is sustainable growth rate : Lakesha’s Lounge Furniture Corporation had an ROE of 19.4 percent and a dividend payout ratio of 30 percent. What is the sustainable growth rate?

Prepare the journal entries to record the transactions : Prepare the journal entries to record the transactions of Beach Supplies Ltd up to and including that which took place on 30 June 2017.

Would you voluntarily disclose the study information : If you were a manufacturer of one of the drugs, would you voluntarily disclose the study information?

Held by the bank during the maintenance period : What is the amount of the average daily required reserves to be held by the bank during the maintenance period?

The MM Model extended for growth includes growing tax shield : The MM Model extended for growth includes a growing tax shield. In the MM extension with growth model, rsU is used as the discount rate for the tax shield

Why are bacteria and archaea placed in different domains : Why are bacteria and archaea placed in different domains, while diverse types of eukaryotes are placed into different kingdoms?

What is a pheochromocytoma : What is a pheochromocytoma? What are the symptoms of this disorder? What is the pathophysiological basis for these symptoms?

Why abo blood typing is an example of codominance : Why ABO blood typing is an example of Codominance and complete dominance. Which blood type is the universal donor and why?

User Account

All Pages