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In the event of an unexpected and severe drain on deposits in the next 3 days, and 10 days, the DI will liquidate assets in
In the event of an unexpected and severe drain on deposits in the next 3 days, and 10 days, the DI will liquidate assets in the following manner: Liquidation Values ($ millions) Asset Fair Value t = 3 days t = 10 days Cash $ 9 $ 9 $ 9 Treasury bills 16 14 15.5 GNMAS 10 8 9 Loans 95 65 75 Calculate the 3-day and 10-day liquidity ind the DI
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