You are a bank regulator working for the Federal Reserve. It is your job to see whether
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You are a bank regulator working for the Federal Reserve. It is your job to see whether banks are solvent or insolvent, liquid or illiquid.
Fit each bank below into one of the following four categories:
Liquid and solvent (best)
Illiquid but solvent (probably needs short-term loans from other banks or from the Fed)
Liquid but insolvent (should be shut down immediately: could fool people for a while if not for your good efforts)
Illiquid and insolvent (should be shut down immediately) Lo1
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