A Bank Has a Need for Cash for a Short

question 17

Essay

A bank has a need for cash for a short period of time to meet its liquidity needs. The bank has significant holding of U.S. treasury securities. The bank really does not want to sell the securities, realizing the liquidity need is a temporary problem. A pension fund has significant cash holdings and would like to earn some return on part of these holdings. The problem is the fund will need this cash in a few days to honor a purchase agreement it made for municipal bonds being issued. Is there any way these two organizations can work together to solve each other's problem?

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Definitions:

Simp

A term colloquially used to describe someone who demonstrates excessive sympathy or attention towards another person, often with little regard for reciprocation.

Assumption

A statement or idea accepted as true without proof, often used as a starting point for reasoning and arguments.

Add

To unite or join one thing to another, typically to increase the quantity or improve the whole.

UI

User Interface, which refers to the means by which a user interacts with a computer, software application, or digital device.