Plainbank has $10 million in cash and equivalents, $30 million in loans, and $15 million in core

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Plainbank has $10 million in cash and equivalents, $30 million in loans, and $15 million in core deposits.

a. Calculate the financing gap.

b. What is the financing requirement?

c. How can the financing gap be used in the day-to-day liquidity management of the bank?

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Financial Institutions Management A Risk Management Approach

ISBN: 9781266138225

11th International Edition

Authors: Anthony Saunders, Marcia Millon Cornett, Otgo Erhemjamts

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