Module: | MODULE B: RISK MANAGEMENT
Q436: A bank has 10,000 crore rupees in total retail deposits. Based on historical behavioral studies and regulatory mapping guidelines, exactly 15 percent of these deposits are expected to strictly mature and flow out within the first 14 days.
Calculate the exact cash outflow amount that must be mapped into the 1 to 14 days time bucket for the Structural Liquidity Statement.
✅ Correct Answer: A
The correct answer is A. To prepare the Structural Liquidity Statement (SLS), banks must map their liabilities into specific time buckets based on contractual maturity or behavioral studies.
The total retail deposit pool is 10,000 crore rupees.
The behavioral study dictates that 15 percent of this total amount is highly volatile and will result in an outflow within the first fortnight.
The calculation is basic multiplication: 10,000 * (15 / 100) = 1,500.
Therefore, exactly 1,500 crore rupees must be mapped as an expected cash outflow exclusively in the "1 to 14 days" time bucket.
The remaining 8,500 crore rupees will be distributed across subsequent, longer-term maturity buckets depending on further behavioral profiling.
The total retail deposit pool is 10,000 crore rupees.
The behavioral study dictates that 15 percent of this total amount is highly volatile and will result in an outflow within the first fortnight.
The calculation is basic multiplication: 10,000 * (15 / 100) = 1,500.
Therefore, exactly 1,500 crore rupees must be mapped as an expected cash outflow exclusively in the "1 to 14 days" time bucket.
The remaining 8,500 crore rupees will be distributed across subsequent, longer-term maturity buckets depending on further behavioral profiling.