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Your bank has the following balance sheet: Input your answers of the following questions in order to three input boxes. For example, the first input
Your bank has the following balance sheet: Input your answers of the following questions in order to three input boxes. For example, the first input box is for your answer to question 1). 1) If there is an unexpected checkable deposit outflow of $100 million, what is the immediate effect on the balance sheet: please describe which item(s) will be changed and the associated new number(s)? Is there any liquidity risk and why? 2) If there is an unexpected nontransaction deposit outflow of $120 million, is there any liquidity risk and why? 3) Assume that the bank has to sell its loans, the price is still the same as original; that is $1 paid for each dollar; the bank must sell $ loans and bank capital will be $ 4) If the price to sell the loans is 50 cents for each dollar(at a fire sale price) of loan, the bank must sell $ loans and bank capital will be $
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