790 12. Which of the following is False? If the bank faces a net drain of 6% of its deposits, the bank's expected liquidity need will be $33M. If the bank has a net deposit drain of S60M and uses asset management to manage its liquidity needs, the size of its balance sheet (total assets) will expand. c. If the bank faces a net drain of 10% of its deposits, it can use all of its cash and liquidate $34M securities holdings to cover it. d. If the bank faces a net drain of 10% of its deposits, it can use all of its cash and issue 534 of large CDs to cover it. c. All of the above, except (b), are true 13. A DI with the following balance sheet (in millions) has a net deposit drain of SSM and it uses asset management (AM) to offset the drain. Assets Liabilities and Equity Cash S10 Deposits $68 Loans 50 Equity 7 Securities 15 Total assets S75 Total liabilities and equity S75 Which of the following is True? On the new balance sheet a. The total asset value and the total liability value will both fall by SSM b. The asset values will be the same as before c. The total asset value will increase d. Total asset value will fall and total liability value will rise by SSM e. Cash and securities will remain unchanged. 14. Solomon Silk has purchased a bond with duration of 4.31 years, market value of SIM, and the yield to maturity of 8%. He wants to know by how much the market value of the bond will change approximately, if interest rates increase by 20 basis points? a $7190 b. $8990 C S3990 d. $7980 c. $7640 15. The First U.S. National Bank has the following assets and liabilities in its portfolio (figures are market values): SIB cash and excess reserves with the Fed (CASH). S3B T-Bills. S6B loans S4B core deposits S5B purchased funds. If the assets need to be liquidated in distress conditions, the Bank will receive 599 for every $100 fair market value of the Balls and Saba SL fair market hela hell 790 12. Which of the following is False? If the bank faces a net drain of 6% of its deposits, the bank's expected liquidity need will be $33M. If the bank has a net deposit drain of S60M and uses asset management to manage its liquidity needs, the size of its balance sheet (total assets) will expand. c. If the bank faces a net drain of 10% of its deposits, it can use all of its cash and liquidate $34M securities holdings to cover it. d. If the bank faces a net drain of 10% of its deposits, it can use all of its cash and issue 534 of large CDs to cover it. c. All of the above, except (b), are true 13. A DI with the following balance sheet (in millions) has a net deposit drain of SSM and it uses asset management (AM) to offset the drain. Assets Liabilities and Equity Cash S10 Deposits $68 Loans 50 Equity 7 Securities 15 Total assets S75 Total liabilities and equity S75 Which of the following is True? On the new balance sheet a. The total asset value and the total liability value will both fall by SSM b. The asset values will be the same as before c. The total asset value will increase d. Total asset value will fall and total liability value will rise by SSM e. Cash and securities will remain unchanged. 14. Solomon Silk has purchased a bond with duration of 4.31 years, market value of SIM, and the yield to maturity of 8%. He wants to know by how much the market value of the bond will change approximately, if interest rates increase by 20 basis points? a $7190 b. $8990 C S3990 d. $7980 c. $7640 15. The First U.S. National Bank has the following assets and liabilities in its portfolio (figures are market values): SIB cash and excess reserves with the Fed (CASH). S3B T-Bills. S6B loans S4B core deposits S5B purchased funds. If the assets need to be liquidated in distress conditions, the Bank will receive 599 for every $100 fair market value of the Balls and Saba SL fair market hela hell