Consider the Following Hypothetical Data: Sources of Liquidity

question 1

Essay

Consider the following hypothetical data: Sources of liquidity
Total cash-type assets
$3000
Maximum borrowed funds limit
$22 000
Excess cash in exchange settlement account (ESA)
$1000
Uses of liquidity
Funds borrowed
$12 500
ESA funds
$500
What is the FI's net liquidity position?
A)($12 500 + $500) - ($3000 + $22 000 + $1000) = -$13 000
B)($3000 + $22 000 + $1000) - ($12 500 + $500) = $13 000
C)($12 500 - $500) = $13 000
D)($3000 + $22 000 + $1000) = $26 000

• A)($12 500 + $500) - ($3000 + $22 000 + $1000) = -$13 000
• B)($3000 + $22 000 + $1000) - ($12 500 + $500) = $13 000
• C)($12 500 - $500) = $13 000
• D)($3000 + $22 000 + $1000) = $26 000

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Definitions:

Human Social Life

The ways in which humans interact, form relationships, and construct societies, encompassing both individual and collective behaviors.

Political Tradeoffs

The process of making decisions that involve giving up certain advantages to gain others, often in the context of political governance and policy-making.

Automatic System

A cognitive processing system that operates without conscious control, swiftly and often based on learned patterns or instincts.

Deliberate System

Involves thoughtful, analytical, and slow processing of information, often contrasted with automatic or instinctual processing.