Question
its five qoustions so Please make sure you awenser all of the qoustions A bank expects in the week to come $55 million in incoming
its five qoustions so Please make sure you awenser all of the qoustions
A bank expects in the week to come $55 million in incoming deposits, $75 million in acceptable loan requests, $10 million in money market borrowings, $35 million in deposit withdrawals and $30 million in loan repayments. This bank is expecting a:
| A. | Balanced liquidity position | |
| B. | Liquidity deficit | |
| C. | Liquidity surplus | |
| D. | Insolvency | |
| E. | None of the other responses are correct. |
A bank expects in the week about to begin: $35 million in new MMDA borrowings, $30 million in deposit withdrawals, $25 million in revenues from the sale of nondeposit services, $35 million in incoming deposits, $15 million in customer loan repayments, $10 million in dividend payments to its stockholders, $20 million in sales of bank assets, $50 million in acceptable loan requests, $15 million in repayments of bank borrowings to other banks, and $10 million in cash outflows to cover other operating expenses. This bank's net liquidity position for the week is:
| A. | None of the other responses are correct | |
| B. | $30 million | |
| C. | $10 million | |
| D. | $15 million | |
| E. | $20 million |
A financial institution that has ready access to immediately spendable funds at reasonable cost at precisely the time those funds are needed is:
| A. | Liquid | |
| B. | Profitable | |
| C. | Risk free | |
| D. | Illiquid | |
| E. | Efficient |
The Shirley State Bank has $80 million in transaction deposits subject to legal reserves. This bank must hold 3 percent legal reserves from $0 up to $43.9 million of transaction deposits and 10 percent legal reserves on any amount above this $43.9 million amount. What is this banks total legal reserves? Treat this problem as literal as possible from the information contained here, and not necessarily according to the textbook.
| A. | $5.927 million | |
| B. | $4.927 million | |
| C. | $1.449 million | |
| D. | None of the other responses are correct. | |
| E. | $2.700 million |
Which of the following is an example of a use of funds for a commercial bank?
| A. | A borrower repays $1500 of a loan they have received | |
| B. | A customer deposits $1000 into their account | |
| C. | A bank must increase its repurchase agreement borrowings by $1,000,000.
| |
| D. | The bank purchases $5,000,000 in T-Bills | |
| E. | A bank increases its Fed funds purchased by $1,000,000 |
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The Budget Building Book For Nonprofits
Authors: Murray Dropkin, Jim Halpin, Bill La Touche
2nd Edition
0787996033, 978-0787996031
