(a) FirstBank has the following balance sheet (in millions of dollars).

Assets		Required Stable Funding factor	Liabilities and equity		Available Stable Funding factor
Cash	12	0%	Stable retail deposits	55	95%
Deposits at the Fed	19	0%	Less stable retail deposits	20	90
Treasury securities	125	5%	Unsecured wholesale Funding from:
GNMA securities	94	15%	Stable small business Deposits	80	95
Loans to A rated corporations (maturity > 1 year)	138	65	Less stable small Business deposits	49	90
Loans to B rated Corporations. Maturity <1 year	106	50%	Nonfinancial corporates	250	50
Premises	20	100%	Equity	60	100
Total	$514		Total	514

(i) Calculate the available amount of stable funding (3 marks)

(ii) Calculate the required amount of stable funding. (3 marks)

(iii) Calculate the stable funding ratio. (2 marks)

(b) Consider the following situation: a financial institution holds two assets in equal proportions, these being liquid securities with a fair market value of $200 and housing loans with a fair market value of $800. Further assume that in case of immediate liquidation, the financial institution would receive $185 for its liquid securities and $700 for its housing loans. What is the financial institutions liquidity index (round to two decimals)? (3 marks)