If FNBNA is expecting a $15 million net deposit drain and the securities liquidity index is 0.98, how many securities would have to be liquidated if the bank used only its securities to fund the expected deposit drain?
A) $15,000,000
B) $16,444,331
C) $15,600,000
D) $15,306,122
E) $16,772,345 15 million/0.98 = $15,306,122
Correct Answer:
Verified
Q3: If a bank meets a net deposit
Q3: Closed-end mutual funds have less need to
Q4: The greater the discount required to sell
Q10: The fear that liquidity problems at one
Q10: A bank meets a deposit withdrawal with
Q11: What are Second National Bank's total sources
Q12: The financing gap is defined as average
Q13: Using stored liquidity to offset a deposit
Q18: Relying on purchased liquidity is more risky
Q19: If a bank's brokered deposits increase $3
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents