Question

Item6 0.5 points Time Remaining 1 hour 22 minutes 30 seconds01:22:30 Item 6 Time Remaining 1 hour 22 minutes 30 seconds01:22:30 Second National Bank (SNB) (million $) Funds borrowed $ 6,500 Maximum amount SNB can still borrow $ 8,500 Cash-type assets $ 3,700 Excess cash reserves $ 80 Federal Reserve borrowings $ 20 What are Second National Bank's total sources of liquidity? Multiple Choice $6,520 $13,500 $5,760 $14,200 $12,280

Answer 1

$12,280

Step-by-step explanation:

Calculation to determine the Second National Bank's total sources of liquidity

Maximum amount SNB can still borrow $ 8,500 Add Cash-type assets $ 3,700

Add Excess cash reserves $ 80

TOTAL SOURCES OF LIQUIDITY $12,280

($8,500+$3,700+$80)

Therefore the Second National Bank's total sources of liquidity will be $12,280