A bank has $6 million in Treasury bills,$3 million in excess reserves at the Fed,$1 million in vault cash,and an $8 million line of credit on the repo market. The bank has borrowed $6 million in Fed funds and $12 million in short-term notes borrowed to finance loans. What is the net liquidity position of the bank and what can you conclude from it?

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The Answer of A bank has $6 million in Treasury bills,$3 million in excess reserves at the Fed,$1 million in vault cash,and an $8 million line of credit on the repo market. The bank has borrowed $6 million in Fed funds and $12 million in short-term notes borrowed to finance loans. What is the net liquidity position of the bank and what can you conclude from it?

A Bank Has $6 Million in Treasury Bills,$3 Million in Excess