assets liabilities and equity cash required reserves $2 million deposits $8 million loans $10 million long-term debt $2 million equity $2 million total $12 million total $12 million the average interest earned on the loans is 6 percent and the average cost of deposits is 5 percent. rising interest rates are expected to reduce the deposits by $3 million. borrowing more debt will cost the bank 5.5 percent in the short term. what will be the size of the bank if a stored liquidity management strategy is adopted?
