Question:
What do Banks do when thinking about Maximising Profits and Balancing their Assets on Liquidity?
Author: eric_galvaoAnswer:
-Banks want Profit to Benefit their Shareholders -The Rate of Return on Illiquid Assets is Greater than Liquid Assets. However, Banks need a Certain Amount of Liquid Assets present to Repay Depositors, but not too much in case they become Unprofitable. Liquid Reserves must be Right
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