Question 14 22.5 pts (a) Explain how a financial institution uses stored liquidity management and purchased liquidity. management to minimise liquidity risk. You should consider the causes of the liquidity risk, the operational benefits and costs of each method in your answer. (7.5 marks) (b) Suppose the manager of a bank's liquid assets portfolio anticipates that interest rates will rise over the next few years. How might the manager structure the liquid asset portfolio using "riding the yield curve strategy" to take advantage of this situation? (10 marks) (c) Suppose the bank manager forecasts interest rates to decrease. Carefully explain the "barbell approach" used to take advantage of the interest rate forecast. (5 marks)