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Financial Institutions > Chapter 12 > Flashcards

Chapter 12 Flashcards

1
Q

Net deposit drains definition + meaning if positive

A

When deposit falls since there are more withdrawals

Positive: less deposits are being added than being withdrawn

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2
Q

Financing gap formula

A

= AVG loans - AVG deposits

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3
Q

Financing requirements formula

A

= Financing gap + liquid assets

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Financial Institutions (12 decks)

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