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please use the balance sheet to answer the followingn questions, and show all work. thank you! Use the following balance sheet (values in thousands of

please use the balance sheet to answer the followingn questions, and show all work. thank you! image text in transcribed
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Use the following balance sheet (values in thousands of dollars) to answer questions 6-10 Assets Cash Required Reserves Short-term Securities Loans Liabilities and Equity Demand Deposits Fed Funds Borrowed Equity 21 369 400 550 151 Total 790 Total 790 8. What are the possible ways that the bank can meet an expected net deposit drain of 4% using stored liquidity management techniques? A. Liquidate all cash holdings B. Utilize further the Fed funds market. C. Liquidate some securities and/or loans. D. Liquidate all cash and use more Fed funds. E. All of the above are suitable techniques. 9. If the bank decides to cut down on interest expenses by reducing its funds, what policy must the bank follow? dependence upon borrowed B. C. D. E. Manage liquidity risk exclusively through asset management. Manage liquidity risk exclusively through liability management. Reduce the bank's dependence upon demand deposits. Increase interest income by increasing lending. Increase interest income by increasing securities holdings. 10. If the bank experiences a $50,000 sudden liquidity drain caused by a loan commitment draw down, what will be the impact on the balance sheet if stored liquidity management techniques are used A. A reduction in cash of $21,000 and an increase in demand deposits of $29,000. B. A reduction in securities and/or current loans totaling $50,000. C. A reduction in cash of $21,000 and a decrease in securities holdings of $29,000. D. A decrease in equity of $50,000. E. A decrease in lending of $50,000

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