If liquidity requirements increase, what is likely to happen to this interest rate margin and bank risk?
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Solution 1
If liquidity requirements increase, banks are likely to increase their interest rate margins to compensate for the increased cost of maintaining a larger amount of liquid assets. This is because banks would need to hold more cash or other liquid assets, which typically earn less interest than loans Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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