Multiple Choice
An FI has $5 million in cash reserves with the Fed in excess of its reserve requirements,$5 million in T-Bills,and a credit line of $10 million to borrow in the repo market.It currently has lent $2 million in the Fed Funds market and borrowed $1 million from the Federal discount window to meet its seasonal needs.
What are the bank's current total uses of liquidity?
A) $1 million.
B) $3 million.
C) $8 million.
D) $10 million.
Correct Answer:
Verified
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