A bank currently has 150 million in hot money deposits, Ask an Expert

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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

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92100795

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