Using Exhibit 3, calculate the approximate change in Corners…

Using Exhibit 3, calculate the approximate change in Cornerstone Regional’s on-balance-sheet liquidity creation (asset side + liability side only, excluding OBS) between Pre-Crisis Q1Y1 and Peak Crisis Q3Y2. Which direction did on-balance-sheet LC move, and what was the primary driver?

A bank offers two loan options to a borrower: Option A charg…

A bank offers two loan options to a borrower: Option A charges 8% interest with no collateral required; Option B charges 5% interest but requires the borrower to pledge real estate collateral. This self-selection mechanism achieves which risk management outcome?