If FNBNA Is Expecting a $15 Million Net Deposit Drain

question 22

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 15 million/0.98 = $15,306,122

---

Definitions:

Promissory Note

A Promissory Note is a financial document in which one party promises to pay a specified sum of money to another party at a predetermined date or on demand.

360-Day Year

A simplified method for calculating interest based on a year of 360 days instead of the actual 365 or 366 days.

Promissory Note

A financial document in which one party promises to pay another party a specified sum of money at a specified date or on demand.

Maturity Date

The exact date on which a financial instrument, such as a note payable or bond, must be repaid in full.