Welcome to the third week of our capitals markets course. In the previous week and in the previous final episode, we said that, we introduced a bank as a powerful intermediary that allows workable schemes to provide financing for borrowers by collecting the money from a large group of depositors. And we said, that the only problem was that, although this system seems to be great for a bank because the bank makes money there. But, it's so far, has not been preferred by the depositors. So, the depositors could otherwise go direct to the borrowers and enjoy basically the same terms, at least the same monetary terms. Now, will try to cope with this problem and invent something that will induce the depositors to lend the money through a bank. In order to do so, we have to go back to the idea of what depositors value. We already in this course, quite a bit of time, mention the situation that, rational investors, they operate on the basis of maximization of their expected utility. Therefore, in reality, these depositors value not only the amount of money they got, but also the timing of this money. So, in what follows, we will specify the time component, not in the way it is used in corporate finance in order to deal with discounting, because in the beginning of this course we said that, to this end, we ignore the time value of money. But, we will study the world in which there are couple of points in the future, in which depositors can enjoy the receipt of a certain amount of money. And, we will claim that the ability to get this money at a certain point is also kind of valuable for these people. Well, let's say the most simplistic example, you deposited some money with the bank for a time deposit, and you know that, if you waited until the expiration of this contract, you will get this amount of money with some interest. But what if you needed the money in-between. By this contract, you cannot get this money back with any interest and sometimes you are even forced to pay a penalty. And when you were opening this time deposit, you were not in the position to liquidate that, mainly to get the money earlier. But then the situation has changed, and then, you preferred to not only forfeit the interest, but maybe even to agree to pay this penalty, because you do need the money earlier. So we'll try to incorporate all that in the model. So, what would we do here? We will throughout this week, build this model in the following way. First of all, we will show how liquidity can be created. Then, we will see that this liquidity may be created by a bank, so that the bank would indeed deliver on its promises. And then as always, when we will have come up with some solution, we will take a breath of relief, and then we'll say great. But then we will see that the model that we will have built and we will have realized, is vulnerable, is unfortunately not so solid, and is quite challenged by the market reality. And then we will start thinking what can be done with that. We will offer some of the remedies at the end of this week, and then study them in greater detail, in the next fourth week. So for now, we are moving towards the model of liquidity.