Bank A has a loan-to-deposit ratio of 75%, core deposits equal 62% of total assets and borrowed
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Bank A has a loan-to-deposit ratio of 75%, core deposits equal 62% of total assets and borrowed funds are 5% of assets. Bank B has a loan-to-deposit ratio of 120%. Core deposits are 55% of assets and borrowed funds are 20% of assets. Which bank has more liquidity risk? Everything being equal, which bank will probably be more profitable when interest rates are low?
(A) Bank A; Bank B
(B) Bank A; Bank B
(C) Bank B; Bank A
(D) Bank B; Bank B
Related Book For
Andersons Business Law and the Legal Environment
ISBN: 978-0324786668
21st Edition
Authors: David p. twomey, Marianne moody Jennings
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