Help with question g. Rethinking Banking Corporation (RBC) has the following balance sheet (in million)LAIBILITIES AND EQUITY ($)ASSETS ($)CashDepositPurchased fundsEquityTotal LiabilitiesLoansSecuritiesTotal Assets9952613075d. Explain the implications of your answer in (c) abovee. Calculate the financing gap (f. What is the financing requirement?4015130RBCS securities portfolio includes $16 million in T-Bills and $10 Million in MUNTEK securities.RBC has $5million in excess cash reserves (above reserve requirements) with the fed. RBC hasborrowed $22 million in fed funds, $20 million line of credit to borrow in the repo market and$18 million from fed discount window to meet seasonal demands.a. What is the RBCs total available liquidity?b. What is RBCs current uses of liquidity?c. What is the net liquidity gap?8. RBC expects a deposit drain of $20 million. Show the Dis balance sheet if the followingconditions occur:1.RBC purchases liabilities to offset this expected drain (II. The stored liquidity management method is used to meet the expected drain (RBCdoes not want the cash balance to fall below $5million, and securities can be sold atfair value)

You have specifically asked for help with part (g). Hence, only part (g) will be answered in this. A…

8. RBC expects a deposit drain of $20 million. Show the Dis balance sheet if the following conditions occur: 1. RBC purchases liabilities to offset this expected drain ( II. The stored liquidity management method is used to meet the expected drain (RBC does not want the cash balance to fall below $5million, and securities can be sold at fair value)

8. RBC expects a deposit drain of $20 million. Show the Dis balance sheet if the following conditions occur: 1. RBC purchases liabilities to offset this expected drain ( II. The stored liquidity management method is used to meet the expected drain (RBC does not want the cash balance to fall below $5million, and securities can be sold at fair value)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 8P

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