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Bankable funds refer to cash or assets that a bank can easily accept and use to meet its liquidity requirements or provide as security for loans.
A bank might hold U.S. Treasury bonds as bankable funds because they can be easily sold or used as collateral due to their high liquidity and low risk.
• Refers to assets that are highly liquid and easily convertible to cash.
• Includes cash, government securities, and marketable securities.
• Essential for maintaining a bank’s liquidity and meeting financial obligations.
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