If JFINEX Bank has 10B in Peso Savings deposits, 10B worth of dollar deposits, 20B in Peso Demand deposits, and 30B in Peso Time Deposits, what is the maximum amount the bank can lend after complying with the current local reserve requirement set by the BSP?7.20B61.60B8.40B52.80B Which of the following scenarios is considered an expansionary monetary policy? A hike in reserve requirement of banks Policy rate cut by the central bankDecrease in income tax collectionBoth B and C Mr. JFINEX is short of funds of $10MM. He can borrow from the following counterparties with their respective bid-offer quotations applicable for O/N or 1 week: Bank A: 0.10% - 0.16%; Bank B: 0.13% - 0.17%; Bank C: 0.12% - 0.15%. At what rate will he borrow assuming there is no borrowing limit?0.15%0.13%0.10%0.17% You want to buy 30MM pesos worth of RTB 10-21. At what rate can you buy the said GS to minimize cost given quotes from the following counterparties? Bank A: 3.60% – 3.45%; Bank B: 3.55% – 3.30%3.45%3.55%3.30%3.60%You are the treasury department of a JFINEX Bank and your client has some excess Euros. If he wants to sell EUR to you, what will be your EUR buying rate if you want 0.020 spread assuming the inter-bank market quote is EUR/USD 1.1580 - 1.6100? 1.15601.59001.13801.6300

Current local reserve requirement set by the BSP is 12% of all the deposits excluding foreign…

If JFINEX Bank has 10B in Peso Savings deposits, 10B worth of dollar deposits, 20B in Peso Demand deposits, and 30B in Peso Time Deposits, what is the maximum amount the bank can lend after complying with the current local reserve requirement set by the BSP? 7.20B 61.60B 8.40B 52.80B

If JFINEX Bank has 10B in Peso Savings deposits, 10B worth of dollar deposits, 20B in Peso Demand deposits, and 30B in Peso Time Deposits, what is the maximum amount the bank can lend after complying with the current local reserve requirement set by the BSP? 7.20B 61.60B 8.40B 52.80B

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter4: Exchange Rate Determination

Section: Chapter Questions

Problem 20QA

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Question

If JFINEX Bank has 10B in Peso Savings deposits, 10B worth of dollar deposits, 20B in Peso Demand deposits, and 30B in Peso Time Deposits, what is the maximum amount the bank can lend after complying with the current local reserve requirement set by the BSP?

7.20B
61.60B
8.40B
52.80B

Which of the following scenarios is considered an expansionary monetary policy?

A hike in reserve requirement of banks
Policy rate cut by the central bank
Decrease in income tax collection
Both B and C

Mr. JFINEX is short of funds of $10MM. He can borrow from the following counterparties with their respective bid-offer quotations applicable for O/N or 1 week: Bank A: 0.10% - 0.16%; Bank B: 0.13% - 0.17%; Bank C: 0.12% - 0.15%. At what rate will he borrow assuming there is no borrowing limit?

0.15%
0.13%
0.10%
0.17%

You want to buy 30MM pesos worth of RTB 10-21. At what rate can you buy the said GS to minimize cost given quotes from the following counterparties? Bank A: 3.60% – 3.45%; Bank B: 3.55% – 3.30%

3.45%
3.55%
3.30%
3.60%

You are the treasury department of a JFINEX Bank and your client has some excess Euros. If he wants to sell EUR to you, what will be your EUR buying rate if you want 0.020 spread assuming the inter-bank market quote is EUR/USD 1.1580 - 1.6100?

1.1560
1.5900
1.1380
1.6300

Definition Definition Policy implemented by the central bank of a country (such as the Federal Reserve in the United States) to achieve certain macroeconomic objectives. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.

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