a)As detailed in Reading 6.1, APRA requires an ADI to formulate a formal contingency plan for dealing with a liquidity crisis. State three (3) elements of this plan (or specific information that the plan should include) according to the relevant guidance note (AGN 210.1)(1.5 marks)

b)This question concerns the Committed Liquidity Facility (CLF)

i.What organisation supplies the liquidity to Australian banks?(0.5 marks)

ii.There are two fees involved in accessing this facility. What are they?(0.5 marks)

iii.Why did the Basel Committee permit Australia to set up this facility?(0.5 marks)