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Posted on Jul 14, 2024

A Bank is facing a short-term liquidity deficit. It plans to cover this deficit with either an ordinary share issue or an interbank borrowing arrangement.

A Bank is facing a short-term liquidity deficit. It plans to cover this deficit with either an ordinary share issue or an interbank borrowing arrangement."

Which financing option do you think will be more beneficial for the Bank in terms of cost and availability? Explain your answer.

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