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If the Bank's Expected Net Deposit Drain Is +4 Percent,what

Question 71

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 Assets Liabilities and Equity Cash Required Reserves  21,000 Demand Deposits 550,000 Short-term Securities 369,000 Fed FundsBorrowed 151,000 Loans 400,000 Equity 89,000 Total 790,000 Total 790,000\begin{array}{lcc}\text { Assets} & \text { Liabilities and Equity}\\\text { Cash Required Reserves } & \text { 21,000 Demand Deposits } & 550,000 \\\text { Short-term Securities } &369,000 \text { Fed FundsBorrowed } & 151,000 \\\text { Loans } &400,000 \text { Equity } & 89,000 \\\text { Total } &790,000 \text { Total } & 790,000\end{array} If the bank's expected net deposit drain is +4 percent,what is the bank's expected liquidity requirement?


A) $7,560.
B) $6,040.
C) $16,000.
D) $22,000.

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