In the week to come,a bank expects $55 million in incoming deposits,$75 million in acceptable loan requests,$35 million in money market borrowings,$10 million in deposit withdrawals,and $30 million in loan repayments.The bank is expecting a:
A)liquidity deficit.
B)liquidity surplus.
C)balanced liquidity position.
D)liquidity reversal.
E)None of the options is correct.

Question

Quizplus · Accepted Answer

The bank is expecting more incoming deposits and acceptable loan requests compared to withdrawals and loan repayments. Therefore, the bank is expecting a surplus in liquidity.

In the Week to Come,a Bank Expects $55 Million in Incoming