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How each of the following potentially affects a bank

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Reference no: EM13885776

Explain how each of the following potentially affects a bank's liquidity risk:

a. Most (95 percent) of the bank's securities holdings are classified as held- to-maturity. b. The bank's core deposit base is a low (35 percent) fraction of total assets.

c. The bank's securities all mature after eight years.

d. The bank has no pledged securities out of the $ 10 million in securities it owns.

Reference no: EM13885776

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