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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 maximum reserves that will count toward the next reserve maintenance period, September 23 to October 6, is
A. $44.565 million.
B. $42.406 million.
C. $45.565 million.
D. $40.406 million.
E. $41.406 million.
Answer
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