Rhinestone National Bank reports the following figures in its current Report of Condition:

a. Evaluate the funding mix of deposits and nondeposit sources of funds employed by Rhinestone. Given the mix of its assets, do you see any potential problems? What changes would you like to see management of this bank make? Why?
b. Suppose market interest rates are projected to rise significantly. Does Rhinestone appear to face significant losses due to liquidity risk? Due to interest rate risk? Please be as specific aspossible.

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Assets (millions) Cash and interbank S50 deposits Short-term srity 15 investments Total loans, gross Long-term securities 150 Other assets Liabilities and Equity (millions) Core deposits S50 Large negotiable CDs 150 Deposits placed by brokers Other deposits Money market liabilities Other liabilities Equity capital Total liabilities and equity capi 400 65 45 195 65 10 Total assets S625 S625