4. A bank has $10 million in T-bills, a $3 million line of credit to borrow in the repo market, $1 million in cash reserves with the Fed in excess of its required reserves. It has also borrowed $3 million in federal funds and $2 million from the Federal Reserves discount window to meet seasonal demands. Calculate the net liquidity of the bank.

5. A bank has $40 million in liquid assets, $250 million in loans, and $270 million in core deposits. Calculate the financing requirement.

6. The assets listed below are going to be liquidated to finance an acquisition. Consider their one-year liquidation value to be fair market value.

Face value Current Liquidation value 70,000 36,000 25,000 Asset PACCAR stock Safeco bonds Treasury bonds 80,000 40,000 25,000 One-year Liquidation value 77,500 39,000 25,000 Calculate the one-year liquidity index for these securities