1. A bank is required to maintain an average daily balance at the Fed of $600 million. In the first 2 days of the maintenance period, it maintains a balance of $450 million, the next three days it maintains a balance of $700 million, the next two days it maintains a balance of $650 million, the next three days it maintains a balance of $450 million, and the next three days it maintains a balance of $650 million. What does its balance at the Fed has to be on the last day of the maintenance period in order to have a zero cumulative reserve deficit?  

A. $600 million

B. $400 million

C. $500 million

D. $800 million

E. None of the options is correct

2. You have an initial amortizing loan (similar to a mortage) of $25,000 to be repaid in equal 30 payments over 30 years. The annual interest is 8%. What is the amount of principal you will pay at the end of year 20?

1 8,818

2. 11,108

3. 9,524

4. 10.286