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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Definitions:

Flat Canvas

Usually refers to a smooth, flat surface used by artists for painting.

Linear Perspective

A depth cue that parallel lines converge in the distance at a vanishing point on the horizon line.

Distance Cue

Visual information that helps perceive the distance or depth of objects in one's environment, crucial for spatial awareness.

Parallel Rows

Lines or sequences of objects placed side by side, keeping the same distance continuously between them.