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Question 16 (5 points) A bank with the following balance sheet expects a net deposit drain of 4%. All cash is meeting required reserves with

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Question 16 (5 points) A bank with the following balance sheet expects a net deposit drain of 4%. All cash is meeting required reserves with The Fed and cannot be liquidated. The average yield on loans is 6%. The average cost of deposits is 5. Borrowing more short-term debt will cost the bank 5.5%. If the bank acquires new short. term debt to meet the decline in deposits, what will be the impact on NII? Cheers 20 SLO $ 600.000 $700,000,000 bities Net Worth Ipo $ 350,000,000 Fedah $ 151,000,000 puity $ 89,000,000 Total Liabilities Net Worth $ 790,000,000 $220,000 $110,000 $3.78 million $22 million

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