Consider the Following Hypothetical Data: Sources of Liquidity

Essay

Consider the following hypothetical data: Sources of liquidity
Total cash-type assets
$3000
Maximum borrowed funds limit
$22 000
Excess cash in exchange settlement account (ESA)
$1000
Uses of liquidity
Funds borrowed
$12 500
ESA funds
$500
What is the FI's net liquidity position?
A)($12 500 + $500) - ($3000 + $22 000 + $1000) = -$13 000
B)($3000 + $22 000 + $1000) - ($12 500 + $500) = $13 000
C)($12 500 - $500) = $13 000
D)($3000 + $22 000 + $1000) = $26 000