Consider the assets (in millions) of two banks, A and B. Both banks are funded by

\($120\) million in deposits and \($20\) million in equity. Which bank has the stronger liquidity position? Which bank probably has a higher profit?

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Bank A Assets Bank B Assets Cash $ 10 Cash $ 20 Treasury securities 40 Consumer loans 30 Commercial loans 90 Commercial loans 90 Total assets 140 Total assets 140