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Question
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.
The minimum reserves that may be maintained toward the next reserve maintenance period, September 23 to October 6, is
A. $33.3170 million.
B. $38.2470 million.
C. $39.0073 million.
D. $35.0876 million.
E. $41.4064 million.
Answer
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