A DI has the following balance sheet (in millions).

The DI€™s securities portfolio includes $16 million in T-bills and $10 million in GNMA securities. The DI has a $20 million line of credit to borrow in the repo market and $5 million in excess cash reserves (above reserve requirements) with the Fed. The DI currently has borrowed $22 million in Fed funds and $18 million from the Fed discount window to meet seasonal demands.
1. What is the DI€™s total available (sources of) liquidity?
2. What is the DI€™s current total uses of liquidity?
3. What is the net liquidity of the DI?
4. Calculate the financing gap.
5. What is the financing requirement?
6. The DI expects a net deposit drain of $20 million. Show the DI's balance sheet if the following conditions occur:
a. The DI purchases liabilities to offset this expected drain.
b. The stored liquidity management method is used to meet the expected drain (the DI does not want the cash balance to fall below $5 million, and securities can be sold at their fair value).
7. In the event of an unexpected and severe drain on deposits in the next 3 days, and 10 days, the DI will liquidate assets in the following manner:

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Assets Cash Loans S9 95 26 $130 Liabilities and Equity Deposits Purchased funds Equity Total liabilities and equity $75 40 15 S130 Securities Total assets