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Question
A bank must maintain an average daily balance at the Fed of $700. On the first day of the maintenance period they maintain a balance of $750, the next two days they maintain a balance of $725, the next three days they maintain a balance of $625, the next two days they maintain a balance of $775, the next two days they maintain a balance of $700 and the next two days they maintain a balance of $675. What does their balance have to be on the last day of the maintenance period in order to have a cumulative reserve deficit?
A) $700
B) $650
C) $750
D) $325
E) None of the above
Answer
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Related questions
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B) Cash in the vault
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Interest Income
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D) All of the above
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B) Interest-rate risk
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A) Credit risk
B) Liquidity risk
C) Interest-rate risk
D) Operational risk
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B) Asset utilization.
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is long-term debt capital whose claims legally follow claims of depositors.
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represents funds set aside for contingencies such as legal action against the institution as well as providing a reserve for dividends expected to be paid but not yet declared and a sinking fund to retire stock or debt in the future.