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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