An FI Has $5 Million in Cash Reserves with the Fed

question 4

Multiple Choice

An FI has $5 million in cash reserves with the Fed in excess of its reserve requirements, $5 million in T-Bills, and a credit line of $10 million to borrow in the repo market.It currently has lent $2 million in the Fed Funds market and borrowed $1 million from the Federal discount window to meet its seasonal needs. What are the bank's current total uses of liquidity?

• A)$1 million.
• B)$3 million.
• C)$8 million.
• D)$10 million.
• E)$15 million.

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