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Question Two A depository institution (DI) has the following balance sheet (in billions) Liabilities and Equity Assets Cash Loans Securities Total assets sh 9 95

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Question Two A depository institution (DI) has the following balance sheet (in billions) Liabilities and Equity Assets Cash Loans Securities Total assets sh 9 95 26 sh130 Deposits Purchased funds Equity Total liabilities and equity sh 75 40 15 sh130 The DI's securities portfolio includes sh 16 billion in T-bills and sh 10 billon in XY2 Ltd securities The DI has a sh20 billion line of credit to borrow in the repo market and sh5 billion in.excess cash reserves (above reserve requirements) with the central bank. The Di currently has borrowed sh22 bilion in the interbank market and sh 18 billion from the central bank's discount window to meet seasonal demands Required a) What is the DI's total available (sources of) liquidity? b) What are the DI's current total uses of liquidity? c) What is the net liquidity of the DI? d) Calculate the financing gap. e) What is the financing requirement

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