Hot money Vulnerable funds Stable/core funds AUD 20m AUD 18m AUD 120m ABC Banks's manager wants to keep a 95% reserve behind its hot money deposits (less the 2% legal reserve requirement imposed by the Reserve Bank behind many of these deposits) and non-deposit liabilities. A 25% liquidity reserve in back of its vulnerable deposits and other borrowings (less required reserves), and a 20% liquidity reserve behind its core deposits and non-deposits funds dess required reserve). D.72.63 ABC Bank's total loans are AUD 150m but recently have been as high as AUD 160m, with a trend growth rate of 10% per annum. The bank aim to be ready at all times to honour customers demand for all loans that fulfil its quality standards. Calculate the bank's total liquidity requirement. OA 71.68 8.62.63 C. 61.68
Hot money Vulnerable funds Stable/core funds AUD 20m AUD 18m AUD 120m ABC Banks's manager wants to keep a 95% reserve behind its hot money deposits (less the 2% legal reserve requirement imposed by the Reserve Bank behind many of these deposits) and non-deposit liabilities. A 25% liquidity reserve in back of its vulnerable deposits and other borrowings (less required reserves), and a 20% liquidity reserve behind its core deposits and non-deposits funds dess required reserve). D.72.63 ABC Bank's total loans are AUD 150m but recently have been as high as AUD 160m, with a trend growth rate of 10% per annum. The bank aim to be ready at all times to honour customers demand for all loans that fulfil its quality standards. Calculate the bank's total liquidity requirement. OA 71.68 8.62.63 C. 61.68
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:SMDIIDI se
Hot money
AUD 20m
Vulnerable funds
AUD 18m
Stable/core funds
AUD 120m
ABC Banks's manager wants to keep a 95% reserve behind its hot money deposits (less the 2% legal reserve requirement impased by
the Reserve Bank behind many of these deposits) and non-deposit liabilities. A 25% liquidity reserve in back of its vuinerable deposits
and other borrowings (less required reserves), and a 20% liquidity reserve behind its core deposits and non-deposits funds (less
required reserve).
ABC Bank's total loans are AUD 150m but recently have been as high as AUD 160m, with a trend growth rate of 10% per annum The
bank aim to be ready at all times to honour customers demand for all loans that fulfi its quality standards.
Calculate the bank's total liquidity requirement.
OA 71.68
B. 62.63
OC. 61.68
OD.72.63
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