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Question
The Bridges State Bank has new loan requests of $315, needs to purchase $125 million in U.S. Treasury securities for reserve requirements, and anticipates draws on lines of credit in the amount of $65 million. If total deposits received today are $205 million and the bank expects to bring in an additional $185 million in deposits next week, what is the estimated funds gap for the Bridges State Bank?
A. $505 million
B. -$390 million
C. $115 million
D. -$315 million
E. None of the options is correct
Answer
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