Consider the Following Hypothetical Data What Is the FI's Net Liquidity Position?
A)($12 500

question 24

Multiple Choice

Consider the following hypothetical data: $$\begin{array} { | l | l | } \hline \text { Sources of liquidity } & \\\hline \text { Total cash-type assets } & \$ 3000 \\\hline \text { Maximum borrowed funds limit } & \$ 22000 \\\hline \text { Excess cash in exchange settlement account (ESA) } & \$ 1000 \\\hline & \\\hline \text { Uses of liquidity } & \\\hline \text { Funds borrowed } & \$ 12500 \\\hline \text { ESAfunds } & \$ 500 \\\hline\end{array}$$ 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

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Definitions:

Market Supply Curve

A graphical representation showing the total quantity of a good that sellers are willing and able to sell at various prices.

Output

The total quantity of goods and services produced by an economy, company, or process over a specific period.

External Costs

Costs of economic activities that are not borne by the individuals or enterprises involved in the transaction but are instead imposed on third parties or society at large, such as pollution.

Market Supply Curve

A graphical representation showing the total quantity of a good that producers are willing to sell at various price levels in a given market.