Question
A bank currently has $150 million in hot money deposits against which it wants to hold an 80 percent reserve and $90 million in vulnerable
A bank currently has $150 million in "hot money" deposits against which it wants to hold an 80 percent reserve and $90 million in vulnerable deposits against which it wants to hold a 30 percent reserve. It also has $45 million in stable deposits against which it wants to hold a 5 percent reserve. Legal reserves for the bank are 5 percent of all deposits. What is the bank's liability liquidity reserve?
A. | $149.25 million |
B. | $285 million |
C. | $141.7875 million |
D. | $216.60 million |
E. | None of the options is correct |
I want to know why is the answer C how to solve it?
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