From the Sources and Uses of Funds Statement in Exhibit 1 calculate the estimated changes in...

  

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From the Sources and Uses of Funds Statement in Exhibit 1 calculate the estimated changes in loans and deposits from month-to-month, as well as estimated liquidity needs. (b) Given the results of part (a) above, in which months does the bank have excess or deficient liquidity? If there is a deficiency, what sources of liquidity are there to meet the liquidity need? In the month(s) in which there is excess liquidity, what uses of funds are there to avoid holding too much idle cash? (c) Given the information in Exhibit 2, calculate the bank's ratio of estimated liquidity sources to liquidity needs. Is there a possibility that the bank will have a liquidity problem at some time in the coming months? End of Month June July August June July August End of Month Exhibit 1 Sources and Uses of Funds Statement Estimated Total Loans $180,000 190,000 210,000 Exhibit 2 Estimated Sources of Liquidity Estimated Asset Liquidity $3,000 4,000 4,000 Estimated Estimated Total Deposits $190,000 180,000 190,000 Sources of Liabilities $ 5,000 10,000 5,000 From the Sources and Uses of Funds Statement in Exhibit 1 calculate the estimated changes in loans and deposits from month-to-month, as well as estimated liquidity needs. (b) Given the results of part (a) above, in which months does the bank have excess or deficient liquidity? If there is a deficiency, what sources of liquidity are there to meet the liquidity need? In the month(s) in which there is excess liquidity, what uses of funds are there to avoid holding too much idle cash? (c) Given the information in Exhibit 2, calculate the bank's ratio of estimated liquidity sources to liquidity needs. Is there a possibility that the bank will have a liquidity problem at some time in the coming months? End of Month June July August June July August End of Month Exhibit 1 Sources and Uses of Funds Statement Estimated Total Loans $180,000 190,000 210,000 Exhibit 2 Estimated Sources of Liquidity Estimated Asset Liquidity $3,000 4,000 4,000 Estimated Estimated Total Deposits $190,000 180,000 190,000 Sources of Liabilities $ 5,000 10,000 5,000

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a From the Sources and Uses of Funds Statement in Exhibit 1 we can calculate the estimated changes i... View the full answer