The average vault cash for the computation period has been estimated to be $1 million per day. a. What level of average daily reserves is required to be held by the bank during the maintenance period, May 11 – 24?
The average vault cash for the computation period has been estimated to be $1 million per day. a. What level of average daily reserves is required to be held by the bank during the maintenance period, May 11 – 24?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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The average vault cash for the computation period has been estimated to be $1 million per day.
a. What level of average daily reserves is required to be held by the bank during the maintenance period, May 11 – 24?
b. Is the bank in compliance with the requirements?
c. What amount of
d. If the average cost of funds to the bank is 8 percent per year and deposits at the Fed pay 0.5 percent, what is the effect on the income statement for this bank for this reserve period?
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