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QUESTION 2A. LIQUIDITY AND LIABILITY MANAGEMENT (10 MARKS) Infinity Bank has the following balance sheet. Assets Amount (Smillion) Liabilities and Equity Amount ($million) Treasury notes
QUESTION 2A. LIQUIDITY AND LIABILITY MANAGEMENT (10 MARKS) Infinity Bank has the following balance sheet. Assets Amount (Smillion) Liabilities and Equity Amount ($million) Treasury notes 20 Term deposits 150 Credit card loans 30 Floating-rate notes 25 Mortgage loans 150 Equity 25 Total 200 Total 200 (1) Calculate the financing gap and financing requirement for Infinity Bank (show all workings). (4 marks) (ii) Infinity Bank's financing gap has recently increased due to growing credit demand. Detail two (2) liquidity strategies that can help Infinity Bank fill this larger financing gap. (6 marks)
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