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

question 39

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 total available sources of liquidity?

• A)$17 million.
• B)$18 million.
• C)$20 million.
• D)$21 million.
• E)$22 million.

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