Answer:
B. $650 million
Step-by-step explanation:
total excess balance = 50 + 2*25 + 3*-75 + 75*3 + 2*0 + 2*-25
total excess balance = 50
so in the last day it can fall short by 50
last day balance = 700 - 50 = 650
Therefore, The balance at the Fed has to be 650 million on the last day of the maintenance period in order to have a zero cumulative reserve deficit