Question: Question 5 (a)Table below indicates the amount of assets available in Bank Alpha, Bank Beta and Bank Omega. Which bank possesses stronger liquidity position? Explain
Question 5
(a)Table below indicates the amount of assets available in Bank Alpha, Bank Beta and Bank Omega. Which bank possesses stronger liquidity position? Explain and justify your answer with support. (Word limit= 300)(10marks)
| Bank Alpha Bank Beta Bank Omega |
| Assets | $ (in million) | Assets | $ (in million) | Assets | $ (in million) |
| Cash | 150 | Cash | 100 | Cash | 100 |
| Treasury notes | 100 | Treasury bills | 200 | Treasury bonds | 100 |
| Consumer loans | 150 | Consumer loans | 100 | Treasury Bills | 50 |
| Commercial loans | 100 | Commercial loans | 100 | Commercial loans | 250 |
| Total assets | 500 | Total assets | 500 | Total assets | 500 |
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