QUESTION TWO N33 405eelt6 (a) A bank has a simple balance sheet. The figures are in mllions of shillings as follows. Assets Cash Securities Loans Total assets Sh 100 1,000 4000 Sh 5100 Liabilities and equity Sh 4,000 500 600 Sh 5100 Deposits Other liabilities Equity Total liabilities and equity The bank's liquidity manager needs cash to meet some unanticipated loan demand. The loan officer has sh. 600 million in loans that she wants to make. Required () If asset conversion method is used and securities are sold to provide money for the bank? Explain your answer. (8 marks) (i) If liability management strategy is used to provide funds for the loan, present the new look balance sheet for the bank. What happens to the size of the bank? Explain your answer (7 marks) )Exlain any EIVE tinor of ro QUESTION TWO N33 405eelt6 (a) A bank has a simple balance sheet. The figures are in mllions of shillings as follows. Assets Cash Securities Loans Total assets Sh 100 1,000 4000 Sh 5100 Liabilities and equity Sh 4,000 500 600 Sh 5100 Deposits Other liabilities Equity Total liabilities and equity The bank's liquidity manager needs cash to meet some unanticipated loan demand. The loan officer has sh. 600 million in loans that she wants to make. Required () If asset conversion method is used and securities are sold to provide money for the bank? Explain your answer. (8 marks) (i) If liability management strategy is used to provide funds for the loan, present the new look balance sheet for the bank. What happens to the size of the bank? Explain your answer (7 marks) )Exlain any EIVE tinor of ro