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Use the following balance sheet (ralines in thousands of dollars) to answer questions 6- 10 Assets Cash Required Reserves Short-term Securities Loans 21 369 400

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Use the following balance sheet (ralines in thousands of dollars) to answer questions 6- 10 Assets Cash Required Reserves Short-term Securities Loans 21 369 400 Liabilities and Equity Demand Deposits Fed Funds Borrowed151 Equity Total 550 89 790 Total 790 6 If the bank's expected ne liquidity requirement? A. $7,560 B. $6,040 C. $16,000 D. $22,000 E. $14,760 t deposit drain is 4% of demand deposits, what is the bank's expected 7. What arethe possible ways that the bank can meet an expected net deposit drain of 4% using purchased liquidity management techniques? A. Utilize further the Fed funds market B. Utilize repurchase agreements C. Liquidate all cash holdings D. All of the above E. Only a and b of the above

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