Homework Answers
Answer: C
Under the purchased liquidity management strategy, the bank will borrow from short term debt to match the assets. Hence deposits will decrease to $ 5 million and there will be a short term debt item of $ 3 million shortfall. Total assets and liabilities will remain same as $ 12 million.
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The following information is for questions 1-4 $8 million $2 million $10 million Deposits Long-te...
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