Assume that a bank expects to access each of the following sources of funds in the event
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a. $ 5 million federal funds line with a large regional bank
b. $ 10 million borrowing capacity, given existing collateral, with the FHLB of Des Moines
c. Sale of $ 20 million of mortgage backed securities
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a The large regional bank may conclude that the banks risk has increased significa...View the full answer
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