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Question You have just been appointed Managing Director of MCM Bank. To facilitate your work, the board of Directors hav

Posted: Sun Apr 10, 2022 8:43 am
by answerhappygod
Question
You have just been appointed Managing Director of MCM Bank. To
facilitate your work, the board of Directors have just mobilized a
deposit of K100m as your initial resources for lending purposes.
The market survey shows that 60% of your monthly loans are
re-deposited in your bank by the end of each month. The bank of
Zambia reserve requirements for deposits are 10%.
Your loan proposals are approved by your board, and immediately
disbursed at the beginning of each month.