The Bridges State Bank has new loan requests of $315,needs to purchase $125 million in U.S.Treasury securities for reserve requirements,and anticipates draws on lines of credit in the amount of $65 million.If total deposits received today are $205 million and the bank expects to bring in an additional $185 million in deposits next week,what is the estimated funds gap for the Bridges State Bank?

Question

Quizplus · Accepted Answer

The estimated funds gap is calculated as total outflows minus total inflows. Outflows: $315 million (loans) + $125 million (securities) + $65 million (credit draws) = $505 million. Inflows: $205 million (deposits today) + $185 million (deposits next week) = $390 million. Funds gap = $505 million - $390 million = $115 million.

The Bridges State Bank Has New Loan Requests of $315,needs