(a) Explain the following bank management activities: liquidity
management, asset management, liquidity management, capital
adequacy management, credit risk management, interest-rate risk
management.
Consider the
Loan Shark Bank (LSB) with the balance sheet shown below, which is
subject to a 10 percent required reserves ratio. Use this
information to answer parts (b) and (c).
Assets
Liabilities
Reserves
$20
Deposits
$100
Loans
$80
Loans from Comm. Banks $ 10
Securities
$30
Loans from the Fed
$
10
Bank Capital
$
10
(b)...