Liquidity index for the depository institution

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Reference no: EM13924758

In the even of an unexpected and severe drain on deposits in the next 3 days, and 10 days, the depository institution will liquidate assets in the following manner:

Asset Fair value 3 days 10 days

Cash $9 $9. $9

Treasury Bills 16 14 15.5

GNMAs 10 8. 9

Loans 95 65 75

Calculate the 3 and 10 day liquidity index for the depository institution.

Reference no: EM13924758

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