An investment bank specializing in fixed-income assets has the following balance sheet (in millions). Amounts are in market values and all interest rates are annual unless indicated otherwise.

Assume that the haircut for all assets is 15 basis points and for all liabilities, 25 basis points (per year).

a. Does the investment bank have sufficient liquid capital to cushion any unexpected losses per the net capital rule?

b. What should the FI do to maintain the net minimum required liquidity?

c. How does the net capital rule for investment banks differ from the capital requirements imposed on depository institutions?