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:

Hormones

Chemical messengers produced by the endocrine glands that regulate the activity of certain cells or organs, essential for every activity of daily living, including the processes of digestion, metabolism, growth, reproduction, and mood control.

Posterior Pituitary Gland

A gland located at the base of the brain that releases hormones like oxytocin and vasopressin, which are produced in the hypothalamus.

Hormones

Regulatory substances produced in organisms to stimulate specific cells or tissues into action.

Endocrine Gland

A gland that secretes hormones directly into the bloodstream to regulate various body functions.