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Notting Hill Bank has new loan requests of £225 million, needs to purchase £100

ID: 2780697 • Letter: N

Question

Notting Hill Bank has new loan requests of £225 million, needs to purchase £100 million of U.K. government securities, and anticipates loan customers will draw £135 million on existing credit lines.  Deposits received today total £215 million and the bank expects to bring in an additional £100 million next week. What is Notting Hill Bank’s estimated funds gap for the coming week?

£135 million

£145 million

£225 million

£100 million

None of the other responses are correct

A.

£135 million

B.

£145 million

C.

£225 million

D.

£100 million

E.

None of the other responses are correct

Explanation / Answer

Fund Gap = Total disbursement - Total receive

= ($225 + $100 + $135) - ($215 + $100)

= $460 - $315

= $145 milion.

Fund Gap in Bank is $145 million.

Option (B) is correct answer.

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