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If FNBNA Is Expecting a $10 Million Net Deposit Drain

question 12

Multiple Choice

  If FNBNA is expecting a $10 million net deposit drain and the securities liquidity index is 0.97,by how much will pretax net income change if the drain is funded entirely through securities sales? A) −$306,122 B) −$150,000 C) −$375,339 D) −$476,289 E) −$474,490 If FNBNA is expecting a $10 million net deposit drain and the securities liquidity index is 0.97,by how much will pretax net income change if the drain is funded entirely through securities sales?


Definitions:

Average Costs

The total cost of production divided by the number of goods produced, representing the per-unit cost of production.

Shut-Down

Shut-down refers to the temporary or permanent cessation of operations, usually in the context of businesses or machinery.

Relationship-Specific Investments

See Specific investments.

Organizational

Pertaining to the structure and function of an organization, including its processes, policies, and personnel management.

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