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?

Questions and Problems 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