A bank currently has $150 million in "hot money" deposits against which it wants to have an 80 percent reserve and $90 million in vulnerable deposits against which it wants to have a 30 percent reserve. He also has $45 million in stable deposits against which he wants to hold a 5 percent reserve. The legal reserves for the bank are 5 percent of all deposits. What is the bank's passive liquidity reserve?

Answer rating: 100% (QA)

Answer i Total reserves held 0... View the full answer