Plainbank has $10 million in cash and equivalents, $30 million in loans, and $15 in core deposits.

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Plainbank has $10 million in cash and equivalents, $30 million in loans, and $15 in core deposits.
a. Calculate the financing gap.
b. What is the financing requirement?
c. How can the financing gap be used in the day-to-day liquidity management of the bank?
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Related Book For  answer-question

Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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