There are four methodologies are described: (1) the sources and uses of funds approach (2) the structure of funds approach, (3) the liquidity indicator approach, and 4) signals from the marketplace.

There is an example of the forecast of checkable deposits, time and savings deposits, commercial loans and consumer loans. IAMANAG Bank is in the rural section of Minnesota; the bank has large loan needs in the late spring and summer months and then loans needs reduce in the fall. Uses the sources and uses of funds approach to indicate which months are likely to results in liquidity deficits and which in liquidity surpluses if these forecasts turn out to be true. Explain carefully what you would do to deal with each months projected liquidity position.

			Checkable Deposits	Time and Savings Deposits	Commercial Loans	Consumer Loans
	Janaury		$ 111	$ 543	$ 682	$ 137
	February		$ 102	$ 527	$ 657	$ 148
	March		$ 98	$ 508	$ 688	$ 153
	April		$ 91	$ 491	$ 699	$ 161
	May		$ 101	$ 475	$ 709	$ 165
	June		$ 87	$ 489	$ 801	$ 170
	July		$ 84	$ 516	$ 855	$ 172
	August		$ 99	$ 510	$ 875	$ 156
	September		$ 105	$ 525	$ 826	$ 149
	October		$ 115	$ 545	$ 766	$ 142
	November		$ 130	$ 564	$ 702	$ 135
	December		$ 120	$ 551	$ 693	$ 133