The AllStar Bank has the following balance sheet: (LG 21-2) Assets (in millions) Cash Other assets Liabilities

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The AllStar Bank has the following balance sheet: (LG 21-2) Assets (in millions) Cash Other assets Liabilities $ 30 Deposits $90 140 $170 Borrowed funds 40 Other liabilities 40 $170 Its largest customer decides to exercise a $15 million loan commitment. Show how the new balance sheet changes if AllStar uses

(a) stored liquidity management or

(b) pur- chased liquidity management.

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Financial Markets And Institutions

ISBN: 9780078034664

5th Edition

Authors: Anthony Saunders, Marcia Cornett

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