$\begin{array}{lcc}
\text { Assets} & \text { Liabilities and Equity}\
\text { Cash Required Reserves } & \text { 21,000 Demand Deposits } & 550,000 \
\text { Short-term Securities } &369,000 \text { Fed FundsBorrowed } & 151,000 \
\text { Loans } &400,000 \text { Equity } & 89,000 \
\text { Total } &790,000 \text { Total } & 790,000
\end{array}$ If the bank's expected net deposit drain is +4 percent,what is the bank's expected liquidity requirement?
A)$7,560.
B)$6,040.
C)$16,000.
D)$22,000.

Question

$\begin{array}{lcc}
\text { Assets} & \text {  Liabilities and Equity}\
\text { Cash Required Reserves  } & \text { 21,000 Demand Deposits } & 550,000 \
\text { Short-term Securities } &369,000 \text { Fed FundsBorrowed } & 151,000 \
\text { Loans } &400,000 \text { Equity } & 89,000 \
\text { Total } &790,000 \text { Total } & 790,000
\end{array}$ If the bank's expected net deposit drain is +4 percent,what is the bank's expected liquidity requirement?
A)$7,560.
B)$6,040.
C)$16,000.
D)$22,000.

Quizplus · Accepted Answer

The Answer of $\begin{array}{lcc}
\text { Assets} & \text {  Liabilities and Equity}\
\text { Cash Required Reserves  } & \text { 21,000 Demand Deposits } & 550,000 \
\text { Short-term Securities } &369,000 \text { Fed FundsBorrowed } & 151,000 \
\text { Loans } &400,000 \text { Equity } & 89,000 \
\text { Total } &790,000 \text { Total } & 790,000
\end{array}$ If the bank's expected net deposit drain is +4 percent,what is the bank's expected liquidity requirement?
A)$7,560.
B)$6,040.
C)$16,000.
D)$22,000.

If the Bank's Expected Net Deposit Drain Is +4 Percent,what