Woylie Bank has the following balance sheet: Assets Cash 21,000 Short-term Securities 369,000 400,000 790,000 Loans Total Liabilities and Equity Demand Deposits Fed Funds Borrowed Equity Total Select one: O a. Run down the $20,000 cash. 550,000 151,000 89,000 790,000 Assume the bank is required to hold a minimum reserve of 2% of the demand deposits, what is (are) the possible way(s) that the bank can meet an expected net deposit drain of $20,000 using stored liquidity management techniques? O b. Run down $10,000 cash and sell some short-term securities to raise $10,000 cash. O c. Liquidate some loans to raise $20,000 cash. Od Sell some short-term securities to raise $20.000 cash
Woylie Bank has the following balance sheet: Assets Cash 21,000 Short-term Securities 369,000 400,000 790,000 Loans Total Liabilities and Equity Demand Deposits Fed Funds Borrowed Equity Total Select one: O a. Run down the $20,000 cash. 550,000 151,000 89,000 790,000 Assume the bank is required to hold a minimum reserve of 2% of the demand deposits, what is (are) the possible way(s) that the bank can meet an expected net deposit drain of $20,000 using stored liquidity management techniques? O b. Run down $10,000 cash and sell some short-term securities to raise $10,000 cash. O c. Liquidate some loans to raise $20,000 cash. Od Sell some short-term securities to raise $20.000 cash
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: The Monetary System
Section: Chapter Questions
Problem 5PA
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