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A bank has $29 million in T-bills, a $10 million line of credit to borrow in the repo market, and $10 million in excess cash
- A bank has $29 million in T-bills, a $10 million line of credit to borrow in the repo market, and $10 million in excess cash reserves with the Fed. The bank currently has borrowed $14 million in fed funds and $10 million from the Fed discount window to meet seasonal demands. (0.3 points) a. What is the banks total available (sources of) liquidity? b. What is the banks current total uses of liquidity? c. What is the net liquidity of the bank?
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