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If FNBNA Is Expecting a $20 Million Net Deposit Drain

Question 6

Multiple Choice

If FNBNA is expecting a $20 million net deposit drain and the bank wishes to fund the drain by borrowing more money,how much will pretax net income change if the borrowing cost is the same as on its existing borrowed funds? A) $600,000 B) −$312,000 C) −$2,000,000 D) −$600,000 E) $312,000 If FNBNA is expecting a $20 million net deposit drain and the bank wishes to fund the drain by borrowing more money,how much will pretax net income change if the borrowing cost is the same as on its existing borrowed funds?


A) $600,000
B) −$312,000
C) −$2,000,000
D) −$600,000
E) $312,000

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