Question
Suppose that a bank faces the following cash inflows and outflows during the coming week: (a) deposit withdrawals are expected to total Tk. 33 million,
Suppose that a bank faces the following cash inflows and outflows during the coming week: (a) deposit withdrawals are expected to total Tk. 33 million, (b) customer loan repayments are expected to amount to Tk. 108 million, (c) operating expenses demanding cash payment will probably approach Tk. 51 million, (d) acceptable new loan requests should reach Tk. 294 million, (e) sales of bank assets are projected to be Tk. 18 million, (f) new deposits should total Tk. 670 million, (g) borrowings from the money market are expected to be about Tk. 43 million, (h) non-deposit service fees should amount to Tk. 27 million, (i) previous bank borrowings totaling Tk. 23 million are scheduled to be repaid, and (j) a dividend payment to bank stockholders of Tk. 140 million is scheduled. What is this bank's projected net liquidity position for the coming week?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started