1. Table 1 shows the consolidated balance sheet of HSBC Holdings PLC as at 31 December 2021. Use the table to answer (a), (b) and (c) and show your workings clearly where applicable. Table 1: The consolidated balance sheet of HSBC Holdings PLC in 2021 (c) With increased storms, heatwaves, typhoons and wildfires being witnessed in the Americas, Asia, Europe and Middle East and North Africa, HSBC Holdings PLC is exposed to increased liquidity (a) Suppose that HSBC Holdings PLC earned 4.05 percent on its risks. In your view, how would a liquidity risk due to these in 2021. If the operating costs in the same year was $34,620 piece of advice you would offer the bank to reduce its exposure in this case. [5 marks] (d) The Financial Conduct Authority which is the financial services (b) Suppose you are appointed as the chief executive officer of HSBC regulator in the United Kingdom (UK), is currently conducting Holdings PLC and you discover that the banks assets have an an investigation into HSBC UK Bank PLC's compliance with the average duration of three UK's anti-money laundering regulations. Briefly discuss two consequences for HSBC Holdings PLC when any of its subsidiaries i. Conduct a duration analysis for HSBC Holdings PLC, and fail to comply with the anti-money laundering regulations of a show what will happen to the net worth of the bank if interest particular country? [6 marks] rates rise by 3 percentage points. [6 marks] ii. What two actions could you take to reduce the bank's interest rate risk? [5 marks]