Question: Consider a banks balance sheet as shown below. Would this bank face any liquidity risk and default risk? What would follow such risks? (you could

Consider a banks balance sheet as shown below. Would this bank face any liquidity risk and default risk? What would follow such risks? (you could take into account rising interest rates in the past year)

Assets Liabilities

Base money $100m

Payable on demand $2,000

Loans $1,900m
Total $2000m Total $2000m

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