Final answer:
Bankers take into account the reserve requirement, the size of the monetary base, and the total value of liabilities when deciding how to allocate their assets. These aspects are crucial for bank stability and fulfillment of financial obligations.
Step-by-step explanation:
When bankers decide how to allocate their assets, they consider multiple factors that affect the stability and profitability of their operations. Among these are the reserve requirement, set by the Federal Reserve, which mandates banks to hold a certain percentage of depositors' money either in their own vaults or at the Federal Reserve Bank. This requirement is intended to ensure that banks can meet their liabilities in times of high demand for withdrawals. Alongside this, the size of the monetary base is also considered, which encompasses the total amount of a country's currency that is either in general circulation in the public or in the commercial bank deposits held in the central bank's reserves. Finally, a bank must pay close attention to the total value of liabilities, ensuring that its asset allocation strategy can cover all owed obligations.