An FI has 2 kinds of assets: 60% in 1 month T-bill and 40% in 1 month consumer loan. In a month, the T-bill will yield $100, but now it worths only $97. The consumer loan will yield $88 in a month, but now it is worth $76. Calculate the 1 month liquidity index.

(d) Refer to (c), if the market conditions change suddenly and the T-bill now worths $98, while the consumer loan worths $72. Calculate the new 1 month liquidity index.

(e) Based on the results from (c) and (d), interpret the liquidity risk faced by the FI before and after the market conditions change.