Explain how each of the following potentially affects a banks liquidity risk: a. Most (95 percent) of

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Explain how each of the following potentially affects a bank’s liquidity risk:
a. Most (95 percent) of the bank’s securities holdings are classified as held- to-maturity.

b. The bank’s core deposit base is a low (35 percent) fraction of total assets.

c. The bank’s securities all mature after eight years.
d. The bank has no pledged securities out of the $ 10 million in securities it owns.

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Bank Management

ISBN: 978-1133494683

8th edition

Authors: Timothy W. Koch, S. Scott MacDonald

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Question Posted: Nov 03, 2015 05:51 AM

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Explain how each of the following potentially affects a banks liquidity risk: a. Most (95 percent) of

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Liquidity risk a Securities classified as heldtomaturity cannot be sold unless there has been an unu...View the full answer

Bank Management

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