A bank has $20 million in cash and equivalents, average loans of $42 million and average...
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A bank has $20 million in cash and equivalents, average loans of $42 million and average deposits of $33 million. a. Calculate the bank's financing gap. b. Suppose the bank's financing gap was $7 million yesterday. What does the difference between today's financing gap and yesterday's financing gap indicate to the bank about its liquidity position? c. Calculate the bank's financing requirement. d. What does the bank's financing requirement mean for the bank? How will it use this information to manage its liquidity? A bank has $20 million in cash and equivalents, average loans of $42 million and average deposits of $33 million. a. Calculate the bank's financing gap. b. Suppose the bank's financing gap was $7 million yesterday. What does the difference between today's financing gap and yesterday's financing gap indicate to the bank about its liquidity position? c. Calculate the bank's financing requirement. d. What does the bank's financing requirement mean for the bank? How will it use this information to manage its liquidity?
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Answer rating: 100% (QA)
a The financing gap can be calculated by subtracting the average deposits from the average loans Fin... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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