Question: Upvote will be given for your useful help! Question 2 (5 marks) Clover Bank estimates that its average net daily deposits are $250 million with

Upvote will be given for your useful help! Question 2 (5

Upvote will be given for your useful help!

Question 2 (5 marks) Clover Bank estimates that its average net daily deposits are $250 million with a standard deviation of $5 million. Clover Bank wants to maintain a minimum of 12% of deposits in reserves at all times. With a 95% confidence level, what is the highest expected level of deposits for Clover Bank? Calculate the amount of reserve does Clover Bank need to maintain. Explain your answers and show all your calculations. Sources: FMI, Mishkin & Eakin, Pearsons and MBFI, Cecchetti, MGH

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