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Queen Savings is attempting to determine its liquidity requirements today (the last day in August) for the month of September. This thrift institution has analyzed

image text in transcribed Queen Savings is attempting to determine its liquidity requirements today (the last day in August) for the month of September. This thrift institution has analyzed its deposit accounts thoroughly and classified them as explained below. Management has elected to hold 85% reserve in liquid assets or borrowing capacity for each dollar of hot money deposits, 25% reserve behind vulnerable deposits, and 5% reserve for its holdings of core funds. Assume time deposits carry a zero percent reserve requirement and all checkable deposits carry 3\% reserve requirement. Queen currently has total loans outstanding of $2,500 million, and expects that its loans to grow to $2,550 million. Find the estimates for Queen's total liquidity requirement for September

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