I need help with this one, please. City Bank has estimated that its average daily net transaction accounts balance over
Posted: Wed Mar 09, 2022 8:18 am
I need help with this one, please.
City Bank has estimated that its average daily net transaction
accounts balance over the recent 14-day computation period was $231
million. The average daily balance with the Fed over the 14-day
maintenance period was $8.5 million, and the average daily balance
of vault cash over the two-week computation period was $6
million.
a. Under the rules effective in 2016, what
is the amount of average daily required reserves to be held at the
Fed during the reserve maintenance period for these demand deposit
balances?
b. What is the average daily balance of
reserves held by the bank over the maintenance period? By what
amount were the average reserves held higher or lower than the
required reserves?
c. If the bank had transferred $35 million of
its deposits every Friday over the two-week computation period to
one of its off-shore facilities, what would be the revised average
daily reserve requirement?
A. Under the rules effective in 2016, what is the amount
of average daily required reserves to be held at the Fed during the
reserve maintenance period for these demand deposit
balances? (Do not round intermediate calculations. Enter your
answer in millions rounded to 3 decimal places. (e.g., 32.161))
B. What is the average daily balance of reserves held by
the bank over the maintenance period? By what amount were the
average reserves held higher or lower than the required
reserves? (Input the amount as a positive value. Enter your
answers in millions rounded to 3 decimal places. (e.g.,
32.161))
C. If the bank had transferred $35 million of its deposits
every Friday over the two-week computation period to one of its
off-shore facilities, what would be the revised average daily
reserve requirement? (Do not round intermediate calculations.
Enter your answer in millions rounded to 3 decimal places. (e.g.,
32.161))
EXAMPLE 13-2 Computation of Dany Avenuse Required Reserves Consider ABC Bank s reserve manager who wants to assess the bank's minimum cash reserve requirement target. The manager knows the bank's net transaction accounts balance at the dose of the banking day on each of the 14 days over the period Tuesday, June 30 to Monday, July 13. Consider the realized net transaction account positions of ABC Bank in Table 13-13 The minimum daily average reserves that a bank must maintain is computed as a percentage of the daily average net transaction accounts held by the bank over the two-week computation period, where Friday's balances are carried over for Saturday and Sunday. The minimum daily average for ABC Bink to hold against the daily average of $12350.2 million in nel transaction accounts is calculated as follows (amounts in millions): Daily average net transaction accounts x RestITE Cerlage Daily average reserves Tequired $152 D Duo $110.2515 2350 $1,350.7-STION Minimum venage rest li
City Bank has estimated that its average daily net transaction
accounts balance over the recent 14-day computation period was $231
million. The average daily balance with the Fed over the 14-day
maintenance period was $8.5 million, and the average daily balance
of vault cash over the two-week computation period was $6
million.
- I Need Help With This One Please City Bank Has Estimated That Its Average Daily Net Transaction Accounts Balance Over 1 (215.08 KiB) Viewed 23 times
is the amount of average daily required reserves to be held at the
Fed during the reserve maintenance period for these demand deposit
balances?
b. What is the average daily balance of
reserves held by the bank over the maintenance period? By what
amount were the average reserves held higher or lower than the
required reserves?
c. If the bank had transferred $35 million of
its deposits every Friday over the two-week computation period to
one of its off-shore facilities, what would be the revised average
daily reserve requirement?
A. Under the rules effective in 2016, what is the amount
of average daily required reserves to be held at the Fed during the
reserve maintenance period for these demand deposit
balances? (Do not round intermediate calculations. Enter your
answer in millions rounded to 3 decimal places. (e.g., 32.161))
B. What is the average daily balance of reserves held by
the bank over the maintenance period? By what amount were the
average reserves held higher or lower than the required
reserves? (Input the amount as a positive value. Enter your
answers in millions rounded to 3 decimal places. (e.g.,
32.161))
C. If the bank had transferred $35 million of its deposits
every Friday over the two-week computation period to one of its
off-shore facilities, what would be the revised average daily
reserve requirement? (Do not round intermediate calculations.
Enter your answer in millions rounded to 3 decimal places. (e.g.,
32.161))
EXAMPLE 13-2 Computation of Dany Avenuse Required Reserves Consider ABC Bank s reserve manager who wants to assess the bank's minimum cash reserve requirement target. The manager knows the bank's net transaction accounts balance at the dose of the banking day on each of the 14 days over the period Tuesday, June 30 to Monday, July 13. Consider the realized net transaction account positions of ABC Bank in Table 13-13 The minimum daily average reserves that a bank must maintain is computed as a percentage of the daily average net transaction accounts held by the bank over the two-week computation period, where Friday's balances are carried over for Saturday and Sunday. The minimum daily average for ABC Bink to hold against the daily average of $12350.2 million in nel transaction accounts is calculated as follows (amounts in millions): Daily average net transaction accounts x RestITE Cerlage Daily average reserves Tequired $152 D Duo $110.2515 2350 $1,350.7-STION Minimum venage rest li