How does the sources and uses of funds approach help a manager estimates a financial institution's need
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Question:
How does the sources and uses of funds approach help a manager estimates a financial institution's need for liquidity? Illustrate with an example when the bank faces liquidity deficits after estimating deposits and loans over the next few months. What steps are needed to carry out the structure of funds approach to liquidity management? Illustrate with an example total liquidity requirements for your estimated loans and deposits.
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