A bank has an average balance of transactions accounts, August 10 to 23, of $824.46 million. The average balance in the cash account is $42.014 million over this period. The bank is carrying forward a deficit of $1.276 million from the last reserve period. The rules require no reserves to be maintained for the first $8.5 million, 3 percent for amounts between $8.5 million and $45.8 million, and 10 percent thereafter. If over the first 12 days of the current reserve maintenance period the average daily reserve held were $37 million, what does the bank need to hold as reserves over the last two days to meet the maximum reserve? $129.110 million. $125.552 million. $141.914 million. $135.690 million. B. $111.453 million.
A bank has an average balance of transactions accounts, August 10 to 23, of $824.46 million. The average balance in the cash account is $42.014 million over this period. The bank is carrying forward a deficit of $1.276 million from the last reserve period. The rules require no reserves to be maintained for the first $8.5 million, 3 percent for amounts between $8.5 million and $45.8 million, and 10 percent thereafter. If over the first 12 days of the current reserve maintenance period the average daily reserve held were $37 million, what does the bank need to hold as reserves over the last two days to meet the maximum reserve? $129.110 million. $125.552 million. $141.914 million. $135.690 million. B. $111.453 million.
Chapter1: Making Economics Decisions
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Problem 1QTC
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![A bank has an average balance of transactions accounts, August 10 to 23, of $824.46 million. The average
balance in the cash account is $42.014 million over this period. The bank is carrying forward a deficit of
$1.276 million from the last reserve period. The rules require no reserves to be maintained for the first $8.5
million, 3 percent for amounts between $8.5 million and $45.8 million, and 10 percent thereafter.
If over the first 12 days of the current reserve maintenance period the average daily reserve held were $37
million, what does the bank need to hold as reserves over the last two days to meet the maximum reserve?
$129.110 million.
$125.552 million.
$141.914 million.
$135.690 million..
B. $111.453 million.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fccf3e76f-d47d-4ec1-acc8-589ea57cc10e%2Fe2624250-f4bd-46c5-94c4-f9e257d043fa%2Fx95ztz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A bank has an average balance of transactions accounts, August 10 to 23, of $824.46 million. The average
balance in the cash account is $42.014 million over this period. The bank is carrying forward a deficit of
$1.276 million from the last reserve period. The rules require no reserves to be maintained for the first $8.5
million, 3 percent for amounts between $8.5 million and $45.8 million, and 10 percent thereafter.
If over the first 12 days of the current reserve maintenance period the average daily reserve held were $37
million, what does the bank need to hold as reserves over the last two days to meet the maximum reserve?
$129.110 million.
$125.552 million.
$141.914 million.
$135.690 million..
B. $111.453 million.
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