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OT THE R8lowing results in a net liquidity drain? Demand deposits increase $120; loans increase $80 everse repurchase agreements increase $50; demand deposit decrease $50

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OT THE R8lowing results in a net liquidity drain? Demand deposits increase $120; loans increase $80 everse repurchase agreements increase $50; demand deposit decrease $50 C. Repurchase agreements increase $100: Demand deposit decrease $50 D. Demand deposits decrease $120; loan repayments are $250 E. Demand deposits increase $10; loans decrease $10 22. All of the following were an objective of the Glass-Steagall Act except A. limiting bank mergers when the merger might adversely affect competition. B. discouraging speculation in financial markets. C. preventing conflict of interest and self-dealing D. restoring confidence in the commercial banking system. 23. Full-service brokerage firms include A. origination, underwriting, and sales. B. registration of securities, storage o securities, and execution of trades. C. execution of trades, investment advice, and margin credit. D. cash management service, private placements, and security distribution 24. Even before the Financial Services Modernization Act was passed, commercial banks could A. invest in common equities B. underwrite U.S. government securities C. underwrite corporate bond issues D. underwrite common stock via best efforts offerings. Refer to the information below for questions 25-26: Formosa International Bank (FIB) (millS) Funds borrowed Maximum amount FIB can still borrow Cash-type assets Excess cash reserves Federal Reserve borrowings $6,300 $8,600 $4,700 S 100 S 200 25. Whatare Formosa International Bank's total sources of future liquidity? 16,520 B. $13,400 C. $14,200 D. $12,280 E. $15,760

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