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This structured assignment is to accompany the case ''108-014-1''. The abstract of the case is as follows: This is the third of a three-case series (108-012-1 to 108-014-1). This case study on subprime crisis concentrates on liquidity - an asset''s property of being traded quickly and at low-cost. Particular attention is devoted to determinants of liquidity, liquidity risk and central bank intervention - all that have arisen due to liquidity problems at Northern Rock, due to the subprime crisis. With the help of this case, students will not only understand the theoretical underpinnings of liquidity, but also analyse the credit market conditions that have led to the spread of subprime contagion to the UK, resulting in the collapse of Northern Rock. This case helpls students to understand and analyse: (1) liquidity and its determinants; (2) liquidity risk; (3) global inter-bank lending; (4) central bank intervention; and (5) issues in managing liquidity risk.