First National Bank has new loan requests of $225 million,needs to purchase $100 million in U.S.Treasury securities to meet pledging requirements,and anticipates draws against credit lines of $135 million.Deposits received today total $215 million and the bank expects to bring in an additional $100 million next week.What is First National's estimated funds gap for the coming week?

Question

Quizplus · Accepted Answer

To calculate the estimated funds gap, we start with the funds available, which is the sum of deposits received today and expected to be received next week ($215 million + $100 million = $315 million). From this we subtract the total cash outflows, which are the new loan requests ($225 million), the purchase of U.S. Treasury securities ($100 million), and the anticipated draws against credit lines ($135 million). 
So, the estimated funds gap for the coming week is:
$315 million - ($225 million + $100 million + $135 million) = $145 million
Therefore, the correct answer is B, $145 million.

First National Bank Has New Loan Requests of $225 Million,needs