Ultimate access to all questions.
Explanation:
The projected available funds gap is calculated by taking the difference between the expected uses of funds and the expected sources of funds.
Expected Uses of Funds (Outflows):
$600 million$500 million$200 million$100 million$600 + 500 + 200 + 100 = $1,400$ millionExpected Sources of Funds (Inflows):
$400 million$375 million$400 + 375 = $775$ millionAvailable Funds Gap: Gap = Total\ Uses - Total\ Sources = 1,400 - 775 = \`$625`\ million
No comments yet.
Q.24 Prime Limited is expecting new deposit inflows of $400 million and deposit withdrawals of $600 million next month. The bank has projected that new loan demand will reach $500 million, and customers with approved credit lines will need $200 million in cash. The bank will sell $375 million in securities but plans to add $100 million in securities to its portfolio. Calculate the projected available funds gap.
A
$600
B
$625
C
$800
D
$975