The Williams National Bank has new loan requests of $585 million,needs to purchase $160 in U.S.Treasury securities for reserve requirements,and anticipates draws on lines of credit in the amount of $120 million.If deposits received today total $300 million and it expects to bring in an additional $340 million in deposits next week,what is the estimated funds gap of the Williams National Bank?

Question

Quizplus · Accepted Answer

The total funds needed are $585 million (loans) + $160 million (securities) + $120 million (lines of credit) = $865 million. The total deposits expected are $300 million (today) + $340 million (next week) = $640 million. The funds gap is $865 million - $640 million = $225 million.

The Williams National Bank Has New Loan Requests of $585