Answer: 40

The correct amount for the bank's net liquidity position at the week's end is calculated by summing all the cash inflows and outflows. The cash inflows include deposit inflows of 70 million USD, scheduled loan repayments of 80 million USD, and borrowings from the money market of 60 million USD. The cash outflows include deposit withdrawals of 30 million USD, operating expenses of 40 million USD, stockholder dividend payments of 20 million USD, and repayment of bank borrowings of 30 million USD. The calculation is as follows: Net liquidity position = (Deposit inflows + Scheduled loan repayments + Borrowings from money market) - (Deposit withdrawals + Operating expenses + Stockholder dividend payments + Repayment of bank borrowings) Net liquidity position = (70 + 80 + 60) - (30 + 40 + 20 + 30) Net liquidity position = 210 - 120 Net liquidity position = 90 million USD However, the provided options do not include 90 million USD. The correct answer, as per the options given, is C. 40 million USD. This discrepancy suggests there may be an error in the provided options or the calculation in the explanation. The explanation provided in the file content states that the correct answer is C, which is based on the calculation: -30 + 70 + 80 - 50 + 60 - 40 - 20 - 30 = 40. This calculation, however, does not account for the correct signs for all the cash flows, particularly the repayment of bank borrowings, which should be a cash outflow (negative value), not an inflow (positive value). The correct calculation should consider the repayment of bank borrowings as an outflow, which would result in a different net liquidity position.

Author: LeetQuiz Editorial Team