What is the bank liability liquidity reserve

Assignment Help Financial Management

Reference no: EM132031015

A bank currently has $50 million in stable deposits against which they want to keep 10% reserves, $100 in vulnerable deposits against which they want to keep 40% reserves, and they have $50 million in "hot money" deposits against which they want to keep 90% reserves. The legal reserves for this bank are 10% of all deposits. What is the bank's liability liquidity reserve?

Reference no: EM132031015

Questions Cloud

Automaker is considering installing three-dimensional : An automaker is considering installing a three-dimensional (3-D) computerized car-styling system at a cost of $230,000

Calculate the value of an asset : Calculate the Value of an asset, assuming the NOI is $140,000 per year for 12 years with the first cash flow at the end of year 1.

Item of construction equipment for another year : A firm is trying to decide whether to keep an item of construction equipment for another year. What is the book value of the equipment at the end of year 4?"

Any fees charged by the federal reserve : What amount of credit will the bank earn over the reserve maintenance period that can be used to offset any fees charged by the Federal Reserve?

What is the bank liability liquidity reserve : The legal reserves for this bank are 10% of all deposits. What is the bank's liability liquidity reserve?

After transferring the funds back to the united states : After transferring the funds back to the United States, what was the investor’s return on her $330,000?

What is the holding period return on bond : The Farmer National Bank plans on selling this bond at the end of 8 years for $1071 (ex-interest). What is the holding period return on this bond?

What is operational risk : What is operational risk, how can it affect a bank and how can it be mitigated?

What is the share price estimate of intrinsic value of sam : What is the share price estimate of the intrinsic value of SAM?

User Account

All Pages