The AllStar Bank has the following balance sheet: Assets (in millions) Liabilities Cash $ 30 Deposits $

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The AllStar Bank has the following balance sheet:

Assets (in millions) Liabilities Cash $ 30 Deposits $ 90 Other assets 140 Borrowed funds 40 $170 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)
purchased liquidity management. (LG 22-2)AppendixLO1

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ISE Financial Markets And Institutions

ISBN: 9781265561437

8th International Edition

Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts

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