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what is the answer Banking and the Management of FL. saved Help Save & Exit Submit Consider the partial balance sheets of Bank A and

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Banking and the Management of FL. saved Help Save & Exit Submit Consider the partial balance sheets of Bank A and Bank B. Suppose that reserve requirements are 10 percent of transaction deposits and both banks have equal access to the interbank market and funds from the Federal Reserve. Bank A Balance Sheet (in millions) Assets Liabilities Reserves $ 50 Deposits $ 200 Loans $920 Borrowing $600 Securities $250 Bank Capital $ 100 Bank B Balance Sheet (in millions) Assets Liabilities Reserves $30 Deposits $200 Loans $920 Borrowing $600 Securities $50 Bank Capital $100 a. Which bank appears to have greater liquidity risk? Bank A Bank B b. Which bank appears to face a greater risk of default? Bank A Bank B MacBook O N W Ee R S D G H a #

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