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For each of the following bank activities, identify and describe the potential liquidity risk: a)Providing a customer with a credit card. b)Creating a Special Purpose

For each of the following bank activities, identify and describe the potential liquidity risk:

a)Providing a customer with a credit card.

b)Creating a Special Purpose Vehicle that issues Asset Backed Commercial Paper backed by mortgages originated by the bank.

c)Taking a long futures position on an organised exchange.

d)Transacting in OTC derivatives where collateral agreements have been put in place to mitigate credit risk.

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