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Question Analyze and interpret the banks liquidity risk. Use ratio comparisons to explain the banks liquidity exposure: 1.Loans/ deposits 2.core deposits/ total assets 3.borrowed funds/

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Analyze and interpret the banks liquidity risk. Use ratio comparisons to explain the banks liquidity exposure:

1.Loans/ deposits

2.core deposits/ total assets

3.borrowed funds/ total assets

Define each ratio and include the optimal ratio banks should aim for.

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