Tupac ins analyzing the capital and liquidity requirements faced by the following two large banks.

Bank A: this bank has limited leverage compared to other banks and a high ratio of equity to total assets or equity to risk-weighted assets (RWA). At the same time, this bank has a low share of cash or equivalent assets on its balance sheet.

Bank B: this bank has high leverage relative to other banks and a low ratio of equity to total assets or equity to risk-weighted assets (RWA). On the other hand, this bank has a high share of cash or equivalent assets on its balance sheet.

In this context, which of the statements below is correct?

Group of answer choices

Bank B is more likely to satisfy capital requirements. Bank A is more likely to satisfy liquidity requirements.

Bank A is more likely to satisfy capital requirements. Bank B is more likely to satisfy liquidity requirements.

Bank A is more likely to satisfy both capital and liquidity requirements.

Bank B is more likely to satisfy both capital and liquidity requirements.