How does a bank manage its day to day liquidity needs, Financial Management

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How does a bank manage its day to day liquidity needs

1. How does a bank manage its day to day liquidity needs? Describe the two ways in which daily payments between banks occur.

2. How does an ADI determine its target level of capital? What sources of capital are available to it? If it projects a future surplus of capital, what steps can it take to reduce the surplus?

3. What steps should an ADI take to reduce its level of loan losses?

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Financial Management: How does a bank manage its day to day liquidity needs

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