Question
A bank currently has $150 million in hot money deposits against which it wants to have an 80 percent reserve and $90 million in vulnerable
A bank currently has $150 million in "hot money" deposits against which it wants to have an 80 percent reserve and $90 million in vulnerable deposits against which it wants to have a 30 percent reserve. He also has $45 million in stable deposits against which he wants to hold a 5 percent reserve. The legal reserves for the bank are 5 percent of all deposits. What is the bank's passive liquidity reserve?
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Bank Management and Financial Services
Authors: Peter Rose, Sylvia Hudgins
9th edition
78034671, 978-0078034671
