Question

First National Bank of Belle Mead has forecast its checkable deposits, time and savings deposits, and commercial and household loans over the next eight months. The resulting estimates (in millions) are shown below. Use the sources and uses of funds approach to indicate which months are likely to result in liquidity deficits and which in liquidity surpluses if these forecasts turn out to be true. Explain carefully what you would do to deal with each month’s projected liquidityposition.


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  • CreatedOctober 31, 2014
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