13) The National Bank has the following balance sheet (in millions of dollars): Run-off Factor 3% 10% 0% 5% Assets Cash Central bank reserve Treasury securities GNMA securities Bonds of AAA-rated corporations Bonds of BBB-rated corporations Mortgages Premises Total Liquidity Level Liabilities and Equity $15 Level 1 Stable retail deposits $210 45 Level 1 Less stable retail deposits 85 75 Level 1 CDs maturing in 6 months 100 40 Level 2A Stable small business deposits 60 100 Level 2A Less stable small business deposits 40 130 Level 2B Nonfinancial corporates 60 70 Equity 120 200 675 Total 675 10% 75% a) Cash inflows over the next 30 days from the bank's performing assets are $63.5 million. Calculate the Liquidity Coverage Ratio (LCR) for the bank. (3 points) b) Some people argue that liquidity management should be the task of central banks, not financial institutions themselves. Thus, financial institutions should focus on providing financing to the economy and should not keep too much liquid assets on their balance sheet. Do you agree? Provide your comments. (3 points)