Question: 1) Define with examples the following key terms. a. Gap analysis b. Securitization & Originate-to-distribute c. Asset-price bubble d. Haircuts & Repurchase agreements e. Shadow


1) Define with examples the following key terms. a. Gap analysis b. Securitization & Originate-to-distribute c. Asset-price bubble d. Haircuts & Repurchase agreements e. Shadow banking system 2) a. The bank you own has the following balance sheet: Assets Liabilities Reserves $100 million Deposits $500 million Loans $525 million Bank capital $125 million If the bank suffers a deposit outflow of $75 million with a required reserve ratio on deposits of 10%, what actions should you take? Show all working and calculations
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