(a) Explain the following bank management activities: liquidity management, asset management, liquidity management, capital adequacy management, credit risk management, interest-rate risk management.

Consider the Loan Shark Bank (LSB) with the balance sheet shown below, which is subject to a 10 percent required reserves ratio. Use this information to answer parts (b) and (c).

Assets	Liabilities
Reserves $20	Deposits $100
Loans $80	Loans from Comm. Banks $ 10
Securities $30	Loans from the Fed $ 10
	Bank Capital $ 10

(b) Given the information about LSB, consider the following two transactions. First, John deposits $2 in LSB. Then, Juan withdraws $5 from his savings account at LSB. Use a T-account to represent the changes in the LSB balance sheet from each transactionthat is, you need to show two T-accounts. Then, show LSB balance sheet after both transactions have taken place.

(c) Given the information about LSBdiscard the transactions from part (b), could LSB remain in business if it suffers a 10 percent loss in its securities? Explain your answer and show the resulting LSB balance sheet if this scenario occurs.