MGT411 Money and Banking Assignments NO.02 Last Date 30th July 2014

[vuassignments]

First Thing we need is to identify the Deposits and Cash in hand ITEMS which are to be used to Calculate the Reserve Ratio

Deposits are :-This number expresses the amount that the bank would have to pay out if all of the bank's clients wanted to withdraw all of their money immediately............ If we interpret this statement i would mean that it is the liability of bank which it would have to pay all ways.

Cash the Bank has on hand :- This includes the money in the bank's safe, the bank's registers and any other physical location to which the bank personnel have immediate access.......... and meaning of this statement would be that Cash at hand of bank, its reserves and balances with other banks.

When these things Identified if Correctly

(NOTE : TO all STUDENTS if any thing which i have not mentioned kindly mentioned it with relation to above definitions and discuss to clear the doubt ness)

Now calculation of First UBL Bank:-

Taking items from its financial statement (Assets and Liabilities)

Deposits which bank has to pay Includes Items

-----Deposits and other Accounts (827,847,738)

Cash the Bank has on Hand Includes Items

---- Cash and balances with treasury banks (88,520,725)

----- Balances with other Banks (25,867,497)

----- Reserves (33,681,210)

NOW CALCULATING RESERVE RATIO OF UBL:-

Reserve Ratio = Cash Bank on Hand / Total Value of Deposits * 100

= 148,069,432 / 827,847,738 * 100

= 17.886

(This is what i have done to calculate Any mistake please identify and discuss to generate solution)