3. Unibank needs to review its liquidity position. According to the head of the division the following information applies:

i. Existing liquid assets (government securities, shares and forex) on balance sheet: $50 million;

ii. Approved, but unused credit line: $10 million;

iii. Existing available cash on balance sheet: $10 million;

iv. Cash on balance sheet utilised in terms of existing daily operations and in terms of minimum regulatory reserve cash requirements: $10 million (part of iii. above); and

v. Seven day interbank loan that funds the short-term cash requirement of Unibank: $5 million

He requests you to use the information above to do the following:

a. Determine the banks total available (sources of) liquidity. (4 marks)

b. Calculate the banks current total uses of liquidity. (2 marks)

c. Determine the net liquidity level of the bank (2 marks)

d. Provide conclusions about your calculations. (2 marks)