Chapter 11 Problem 1 Provided the information below, from what sources can the b
ID: 2769703 • Letter: C
Question
Chapter 11 Problem 1
Provided the information below, from what sources can the bank cover its liquidity needs?
Input Area:
Deposit withdrawls
$100
Deposit inflows
$95
Scheduled loan repayments
$90
Acceptable loan requests
$60
Borrowings from the money market
$80
Sales of bank assets
$40
Stockholder dividend payment
$150
Revenues from sale of nondeposit services
$95
Repayment of bank borrowings
$60
Operating expenses
$50
Output Area:
Projected net liquidity position
($20)
Deposit withdrawls
$100
Deposit inflows
$95
Scheduled loan repayments
$90
Acceptable loan requests
$60
Borrowings from the money market
$80
Sales of bank assets
$40
Stockholder dividend payment
$150
Revenues from sale of nondeposit services
$95
Repayment of bank borrowings
$60
Operating expenses
$50
Explanation / Answer
Deposit inflows, Sales of bank assets, Revenues from sale of nondeposit services and Repayment of bank borrowings are the sources for bank liquidity needs