1. In the lecture video The Business of Banking 4, the professor detailed the cash items "Primary reserves" and "Secondary reserves". a) Are they liquid assets or not? What is the difference between them? b) There are the following items in "Primary reserves" (you can also refer Cash Items 256) Vault cash Required reserves Excess reserves Deposits at other banks (correspondent banking relationship). Cash/check items in the process of collection "Among all of them, which item is the only one could be managed by a bank and whether a bank would like to hold this item? Why do banks hold only a small part of assets as reserves? c) List four examples of "Secondary reserves" and explain what a repurchase agreement is? 2. The Business of Banking 5&6 and the textbook page 257 Loans and page 265-267 about types of loans in Secking Income a) Loans are banks' most important asset class. It account about 56 % of total assets. b) What are loans key characteristics?| c) There are different types of loans introduced