growth tate over the past three years has been about 8 percent. Carefully prepare low and high estimates for Jefferson's total liquidity requirement for September.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![4. Jefferson Security Savings is atempring to determine its liquidity requirements today
(the last day in August) for the month of September. September is usually a month of
heavy loan demand due ro the beginning of the school term and the buildup of business
inventories of goods and services for the fall season and winter. This thrife institution
has analyzed its deposit accounts thoroughly and classified them as explained below.
Management has elected to hold a 75 percent reserve in liquid assets or borrowing
capacity for each dollar of hot money deposits, a 20 percent reserve behind vulnerable
deposits, and a 5 percent reserve for its holdings of core funds. The estimated reserve
requirements on most deposits are 3 percent, except that savings deposits carry a zero
percent reserve requirement and all checkable deposits above $48.3 million carry a 10
percent reserve requirement. Jefferson currencly has total loans outstunding of $2,389
million, which two weeks ago were as high as $2,567 million. Its loans' mean annual
growth tate over the past three years has been about 8 percent. Carefully prepace low
and high estimates for Jefferson's total liquidity requirement for September.
Savings
Deposits
Nonpersonal
Time Deposits
Checkable
Millions of Doliars
Deposits
$782
Hot money funds
Vulneroble funds
Stabla (core) funds
$132
207
821
S
52
540
72
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