MCQ

Assets Liabilities & Equity Cash Required Reserve: 510,000 Demand Deposits 500,000 Short-term securities 490,000 Long-term Debt 300,000 Equity 200,000 Total 1,000,000 Total 1,000,000 If the bank's expected net deposit drain is +4 percent, what is the bank's expected liquidity requirement? Equity 200,000 Total 1,000,000 Total 1,000,000 If the bank's expected net deposit drain is +4 percent, what is the bank's expected liquidity requirement? a) a. 30,000 b) b. 20,000 c) c. 25,000 d) d. 15,000