Explain how each of the following potentially affects a banks liquidity risk: a. Most (95 percent) of
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a. Most (95 percent) of the bank’s securities holdings are classified as held- to-maturity.
b. The bank’s core deposit base is a low (35 percent) fraction of total assets.
c. The bank’s securities all mature after eight years.d. The bank has no pledged securities out of the $ 10 million in securities it owns.
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Liquidity risk a Securities classified as heldtomaturity cannot be sold unless there has been an unu...View the full answer
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