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b. Assume instead that 65 percent of Western Slope's investments are liquid and that 65 percent of nondeposit liabilities are volatile. Recalculate the liquidity surplus

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b. Assume instead that 65 percent of Western Slope's investments are liquid and that 65 percent of nondeposit liabilities are volatile. Recalculate the liquidity surplus or deficit. Compare the advantages and disadvantages of this situation to that in part a. Assets Total (mils.) Liquid (%) Cash $ 266.25 12% Loans: Commercial 1,002.27 0% Consumer 539.68 0% Investments 1,317.45 65% Other Assets 217.15 17% Total $ 3,342.80 Volatile (%) Funding Sources Deposits $2,228.38 Other Liabs. 855.79 10% 65% Equity 258.63 0% Total $ 3,342.80 b. Assume instead that 65 percent of Western Slope's investments are liquid and that 65 percent of nondeposit liabilities are volatile. Recalculate the liquidity surplus or deficit. Compare the advantages and disadvantages of this situation to that in part a. Assets Total (mils.) Liquid (%) Cash $ 266.25 12% Loans: Commercial 1,002.27 0% Consumer 539.68 0% Investments 1,317.45 65% Other Assets 217.15 17% Total $ 3,342.80 Volatile (%) Funding Sources Deposits $2,228.38 Other Liabs. 855.79 10% 65% Equity 258.63 0% Total $ 3,342.80

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