1. The balance sheet for the Banks are presented below ($ millions):

Assets	Bank A	Bank B	Bank C	Bank D
Cash	$30	$15	$30	$ 7
Loans	90	105	105	50
Short term securities	50	50	50	3
Total assets	$170	$170	$185	$60
Liabilities and equity
Deposits	$110	$110	$110	$50
Borrowed funds	$40	$40	55	5
Equity	$20	$20	20	5
Total liabilities and equity	$170	$170	$185	$60

If each bank ( Bank A, B,C, and D) decide to exercise a $10 million loan commitment, what the impact on the size of the above banks in dollar value if bank A and D use purchased liquidity and bank, B uses stored liquidity and bank C uses 80% from purchased liquidity and the rest from stored liquidity.

1. A managed fund has $10 million in cash and $90 million invested in securities. It currently has 10 million units outstanding. The net asset value (NAV) of this fund is $10 per unit (NAV = Market value of units/number of units = $100m/10 m = $10 per unit).

1. Assume that some of the unit holders decide to cash in their units of the fund. How many units at its current NAV can the fund take back without resorting to a sale of assets?

1. Due to anticipated heavy withdrawals, the fund sells 100,000 shares of XYZ stock currently valued at $50 per share. However, it receives only $40 per share of the XYZ stock. What is the net asset value after the sale? What are the cash assets of the fund after the sale?

1. Assume that after the sale of XYZ shares, 1 million fund units are sold back to the fund. What is the current NAV? Is there a need to sell more securities to meet this redemption?