The average daily net transaction accounts of a local bank during the most recent reserve computation period is $332 million. The amount of average daily reserves at the Fed during the reserve maintenance period is $25.30 million, and the average daily vault cash corresponding to the maintenance period is $4.5 million. a. Under the rules effective in 2013, what is the average daily reserve balance required to be held by the bank during the maintenance period? b. Is the bank in compliance with the reserve requirements? Complete this question by entering your answers in the tabs below. Required A Required B Under the rules effective in 2013, what is the average daily reserve balance required 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 reserve required $ 2.537 million

The average daily net transaction accounts of a local bank during the most recent reserve computation period is $332 million. The amount of average daily reserves at the Fed during the reserve maintenance period is $25.30 million, and the average daily vault cash corresponding to the maintenance period is $4.5 million. a. Under the rules effective in 2013, what is the average daily reserve balance required to be held by the bank during the maintenance period? b. Is the bank in compliance with the reserve requirements? Complete this question by entering your answers in the tabs below. Required A Required B Under the rules effective in 2013, what is the average daily reserve balance required 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 reserve required $ 2.537 million

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

The average daily net transaction accounts of a local bank during the most recent reserve computation period is $332 million. The
amount of average daily reserves at the Fed during the reserve maintenance period is $25.30 million, and the average daily vault cash
corresponding to the maintenance period is $4.5 million.
a. Under the rules effective in 2013, what is the average daily reserve balance required to be held by the bank during the maintenance
period?
b. Is the bank in compliance with the reserve requirements?
Complete this question by entering your answers in the tabs below.
Required A Required B
Under the rules effective in 2013, what is the average daily reserve balance required 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 reserve required
$
2.537 million
< Required A
Required B >

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