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

question 11

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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Definitions:

Psychopathology

The academic examination of mental illnesses, focusing on their manifestations, origins, and remedies.

Cognitive Theories

Theories in psychology that emphasize internal thoughts, information processing, and problem-solving abilities in understanding behavior.

Brain Stimulation

Therapeutic procedures that use electrical or magnetic fields to stimulate brain activity, used in treating a variety of neurological and psychiatric conditions.

Nervous System

The part of an organism that coordinates its actions by transmitting signals to and from different parts of its body, comprising the brain, spinal cord, and nerve fibers.