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Bank XYZ wishes to raise its liabilities by $30m to cover its long-term lending for the next quarter. It can raise the funds via
Bank XYZ wishes to raise its liabilities by $30m to cover its long-term lending for the next quarter. It can raise the funds via the issuance of either 90-day certificates of deposit or 5-year bonds. Discuss how the bank's choice of liability can: (a) (b) directly affect its liquidity risk; indirectly affect its credit risk
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a Directly affect its liquidity risk The choice between issuing 90day certificates of deposit and 5year bonds directly affects the banks liquidity ris...
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Operations management
Authors: Jay Heizer, Barry Render
10th edition
978-0136119418, 136119417, 978-0132163927
