Question
6. A financial institution has the following market value balance sheet structure: Asset Liabilities Cash $30 Loans $140 Deposits $90 Equity $40 Other Liabilities $40
6. A financial institution has the following market value balance sheet structure:
| Asset | Liabilities |
| Cash $30 Loans $140 | Deposits $90 Equity $40 Other Liabilities $40 |
| Total Assets $170 | Total Liabilities and Equity $170 |
If a customer decided to exercise a $15 million loan commitment. Show how the new balance sheet changes if the bank uses
( a ) stored liquidity management or
( b ) purchased liquidity management.
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Building Financial Models
Authors: John Tjia
2nd Edition
0071608893, 978-0071608893
