1.

Suppose that a bank purchased 25 million shares of Company X. The shares are bid $51.5 and offer $52.5. What is the cost of liquidation in a normal market?

		$50 million
		$12.5 million
		$30 million
		$15 million

2.

Which of the following is not the main driver of liquidity funding risk? Choose all that apply.

		A financial institutions use of long-term instruments to fund short-term needs
		Poor financial performance
		High levels of cash holdings
		Flight to quality during recessions