Multiple Choice
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?
A) $90 million
B) $81 million
C) $70 million
D) $20 million
E) None of the options is correct
Correct Answer:

Verified
Correct Answer:
Verified
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