Problem $3$:

Suppose that a thrift institution's liquidity division estimates that it holds $$30$ million in hot money

deposits and other IOUs against which it will hold an $80$ percent liquidity reserve, $$65$ million in

vulnerable funds against which it plans to hold a $25$ percent reserve, and $$123$ million in stable or core

funds against which it will hold a $5$ percent liquidity reserve. The thrift expects its loans to grow $9\%$

annually; its loans currently stand at $$128$ million, but have recently reached $$143$ million. If reserve

requirements on liabilities currently stand at $3\%,$ what is this depository institution's total liquidity

requirement? $($chapter $11)$