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QUESTION 2A. LIQUIDITY AND LIABILITY MANAGEMENT (8 MARKS) 2A. KeyCorp Bank has the following balance sheet. Assets ($ million) Liabilities and equity ($ million) Treasury

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QUESTION 2A. LIQUIDITY AND LIABILITY MANAGEMENT (8 MARKS) 2A. KeyCorp Bank has the following balance sheet. Assets ($ million) Liabilities and equity ($ million) Treasury notes 75 Deposits 105 Loans 125 Interbank funds 701 Equity 25 Total assets 200 Total liabilities and equity 200 One of the bank's wholesale customers requests to make a deposit withdrawal of $30 million. The bank has the option to fund this withdrawal through an asset liquidity approach OR a liability liquidity approach. Detail how each approach can be carried out, and the impact of each approach on the bank's asset size, simple liquidity ratio, and simple capital ratio. Your answer must show all the workings and calculated values for these measures. QUESTION 2A. LIQUIDITY AND LIABILITY MANAGEMENT (8 MARKS) 2A. KeyCorp Bank has the following balance sheet. Assets ($ million) Liabilities and equity ($ million) Treasury notes 75 Deposits 105 Loans 125 Interbank funds 701 Equity 25 Total assets 200 Total liabilities and equity 200 One of the bank's wholesale customers requests to make a deposit withdrawal of $30 million. The bank has the option to fund this withdrawal through an asset liquidity approach OR a liability liquidity approach. Detail how each approach can be carried out, and the impact of each approach on the bank's asset size, simple liquidity ratio, and simple capital ratio. Your answer must show all the workings and calculated values for these measures

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