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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