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Explain what this statement means

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"We can think of a bank's liabilities as the sources of its funds, and we can think of a bank's assets as the uses of its funds."

1. Explain what this statement means.

2. Why might the managers of a bank want the bank to be highly leveraged?

3. Why might the bank's shareholders want the bank to be less highly leveraged?

Add citation and references (minimum 450 words)

Reference no: EM131888162

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