Suppose that a bank faces the following cash inflows and outflows during the coming week: (a) Deposit

Question:

Suppose that a bank faces the following cash inflows and outflows during the coming week:

(a) Deposit withdrawals are expected to total $33 million,

(b) Customer loan repayments are expected to amount to $108 million,

(d) Acceptable new loan requests should reach $294 million,

(e) Sales of bank assets are projected to be $18 million,

(f) New deposits should total $670 million,

(g) Borrowings from the money market are expected to be about $43 million,

(h) Non-deposit service fees should amount to $27 million,

(i) Previous bank borrowings totaling $23 million are scheduled to be repaid, and

(j) A dividend payment to bank stockholders of $140 million is scheduled. What is this bank’s projected net liquidity position for the coming week?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...