Final answer:
To calculate Silver Bank's total liquidity requirement, multiply each type of deposit by its liquidity reserve percentage and sum the results. The total liquidity requirement for Silver Bank equals 55.26 billion.
Step-by-step explanation:
To calculate the total liquidity requirement for Silver Bank, we need to multiply each type of fund by its respective liquidity reserve requirement and then sum them up. Silver Bank already holds a 2.5% legal reserve, but this information is not necessary for calculating the total liquidity requirement; it is only relevant for determining if the bank meets its legal reserve requirement. The liquidity requirement for each type of fund is calculated as follows:
Hot money deposits: 41 billion × 84% = 34.44 billion
Vulnerable deposits: 65 billion × 18% = 11.7 billion
Stable deposits: 152 billion × 6% = 9.12 billion
By adding these together, we get the total liquidity requirement:
34.44 billion + 11.7 billion + 9.12 billion = 55.26 billion
Therefore, Silver Bank's total liquidity requirement is 55.26 billion.