If FNBNA Is Expecting a $15 Million Net Deposit Drain

question 17

Multiple Choice

If FNBNA is expecting a $15 million net deposit drain and the securities liquidity index is 0.98,how many securities would have to be liquidated if the bank used only its securities to fund the expected deposit drain?

• A)$15,000,000
• B)$16,444,331
• C)$15,600,000
• D)$15,306,122
• E)$16,772,345

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Definitions:

Financial Performance

A measure of how well a firm can use assets from its primary mode of business and generate revenues, indicating the company’s financial health, profitability, and growth over a certain period.

Performance-Driven Cultures

Organizational environments that prioritize measurable results and rewards based on performance achievements.

HRM System

Human Resource Management System; an intersection of human resources and information technology through HR software, enabling better data management and HR processes.

Monitoring

The systematic process of observing or checking work performance or processes over time for the purpose of ensuring compliance with standards.