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  3. question b5 15 marks a copy the following balance sheet...

Question: question b5 15 marks a copy the following balance sheet...

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Question B5. (15 marks) a) Copy the following balance sheet into your script and add the unique missing component. (2 marks) L+E AUD 0 AUD 900 Bank A ESF & Cash Treasury Bonds FX, 10 USD, AUD/USDO.78 Loans AUD 40.00 AUD 100.00 AUD 12.82 AUD 1000.00 Deposits (Axel) Deposits (other customers) b) Show how each of the following transactions affects the above balance sheet. (10 marks) Axel receives AUD 60 from Bill (who has an account at another bank) The bank collects AUD 20 in interests (all borrowers have an account at the bank with sufficient funds) Depositors of Bank A withdraw AUD 10 in cash. Depositors from Bank B withdraw AUD 5 from Bank As ATM The exchange rate changes to AUD/USD 0.70 (Hint: What happened to the value of the AUD? USD? Does the bank make a profit or loss?) . . . . c) Compare the new with the initial balance sheet and evaluate if liquidity and/or solvency risk has increased or decreased (3 marks)

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