SECTION II: Complete problems within the provided Problem 1. Liquidity Management (20 points) ABC Bank estimates that over the next week the following cash inflow and outflows will occur (all figures in millions of dollars): Deposit withdrawals Deposit inflows Scheduled loan repayments Acceptable loan requests Borrowings from the money market $98 75 84 54 62 Sales of bank assets Stockholder dividend payments Revenues from sale of non-deposit services Repayments of bank borrowings Operating expenses 80 85 70 35 1.1. (10 pts) What is this bank's projected net liquidity position the next week? 1.2. (7 pts) From what sources can the bank cover its liquidity needs? 1.3. (3 pts) If interest rate is expected to increase in the coming week, what is the cost of liquidity funding likely to be?

SECTION II: Complete problems with in the provided ranklem 1. Liquidity Management (20 points) 1.1. (10 pts) What is this bank's projected net hquium, 1.2. (7 pts) From what sources can the bank cover its liquidity needs: 1.3. (3 pts) If interest rate is expected to increase in the coming week, what is the cost or nqununy ualing likely to be