Explanation:

To evaluate the statements using the sources and uses of funds method, we track changes in total deposits and total loans month-by-month:

Total Deposits:

Total Loans:

Looking specifically at the changes in April (from March to April):

Change in Total Deposits = 555 - 580 = -25. A decrease in deposits is a use of funds (liquidity outflow) of $25.
Change in Total Loans = 885 - 900 = -15. A decrease in loans represents repayments, which is a source of funds (liquidity inflow) of $15.
Net Liquidity Gap = Sources - Uses = $15 - $25 = -$10.

Therefore, statement D is correctly calculated and true.

20.6.3. First City Bell Bank has forecast its checkable deposits, time and saving deposits, and commercial and household loans over the next six months; aka, semester.

Month Checkable Deposits Time and Savings Deposits Comm'l Loans Consumer Loans
January 120 400 500 140
February 110 490 640 220
March 90 490 700 200
April 80 475 710 175
May 95 475 700 150
June 75 480 720 210

If we employ the sources and uses of funds method to estimate the bank’s liquidity needs over the semester, which of the following statements is TRUE?

Month	Checkable Deposits	Time and Savings Deposits	Comm'l Loans	Consumer Loans
January	120	400	500	140
February	110	490	640	220
March	90	490	700	200
April	80	475	710	175
May	95	475	700	150
June	75	480	720	210

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Last updated: July 5, 2026 at 07:00

During February, sources of liquidity equal zero

During the first quarter (Jan, Feb, March), Acme expects a positive liquidity gap

Over the cumulative six-month semester (Jan through June), Acme expects a positive liquidity gap

During April, sources of $15 partially offset uses of $25 to imply a negative liquidity gap of ten because $15 - $25 = -$10

Financial Risk Manager Part 2