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AllStarBank has the following balance sheet (in millions): Assets Liabilities and Equity Cash $30 Deposits $110 Loans 90 Borrowed funds 40 Securities 50 Equity 20
AllStarBank has the following balance sheet (in millions): Assets Liabilities and Equity Cash $30 Deposits $110 Loans 90 Borrowed funds 40 Securities 50 Equity 20 Total assets 170 Total liabilities and equity 170 AllStarBanks largest customer decides to exercise a $15 million loan commitment. How will the new balance sheet appear if AllStar uses the following liquidity risk strategies? Stored liquidity management. Purchased liquidity management
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