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John Camey,the Money Manager of the First State Bank,has Estimated

Question 91

Multiple Choice

John Camey,the money manager of the First State Bank,has estimated that the bank has a 20 percent chance of a liquidity deficit of $700 million,a 30 percent chance of a liquidity deficit of $200 million,a 30 percent chance of a liquidity surplus of $400 million and a 20 percent chance of a liquidity surplus of $900 million over the next week.What is the bank's expected liquidity deficit or surplus over the next week?


A) $100 million liquidity surplus
B) $100 million liquidity deficit
C) $400 million liquidity surplus
D) $500 million liquidity surplus
E) $0 liquidity surplus

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