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Solve it and provide it clearly a) Consider the following cash flow for a bank. Using the information above, answer the following questions: i) Calculate

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Solve it and provide it clearly

a) Consider the following cash flow for a bank. Using the information above, answer the following questions: i) Calculate the net liquidity amount of a bank. (5 marks) ii) Based on the net liquidity amount calculated in (i), what should the bank do? (3 marks) b) Explain how the following factors affect bank's decision in investment securities. i) Credit risk (4 marks) ii) Liquidity risk (4 marks) iii) Call risk (4 marks)

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