New deposits of $35 million are expected, and other sources will generate $15 million in cash. What…


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New deposits of $35 million are expected, and other sources will generate $15 million in cash. What… 1 answer below » 1. For the upcoming week, Nobel National Bank plans to issue $25 million in mortgages and purchase $100 million in 31-day T-bills. New deposits of $35 million are expected, and other sources will generate $15 million in cash. What is Nobel’s estimate of funds needed? 2. A bank estimates that demand deposits are, on average, $100 million with a standard deviation of $5 million. The bank wants to maintain a minimum of 8% of deposits in reserves at all times. What is the highest expected level of deposits during the month? What reserves do they need to maintain? Use a 99% confidence level. The View complete question » 1. For the upcoming week, Nobel National Bank plans to issue $25 million in mortgages and purchase $100 million in 31-day T-bills. New deposits of $35 million are expected, and other sources will generate $15 million in cash. What is Nobel’s estimate of funds needed? 2. A bank estimates that demand deposits are, on average, $100 million with a standard deviation of $5 million. The bank wants to maintain a minimum of 8% of deposits in reserves at all times. What is the highest expected level of deposits during the month? What reserves do they need to maintain? Use a 99% confidence level. The remaining questions relate to the first month’s operations of NewBank. View less » Jul 08 2014 12:39 PM

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