Management’s Discussion and Analysis Liquidity Risk Management Liquidity is of critical importance to financial institutions.
Most of the failures of financial institutions have occurred in large part due to insufficient liquidity.
Accordingly, the firm has in place a comprehensive and conservative set of liquidity and funding policies to address both firm-specific and broader industry or market liquidity events.
Our principal objective is to be able to fund the firm and to enable our core businesses to continue to serve clients and generate revenues, even under adverse circumstances.
We manage liquidity risk according to the following principles: Excess Liquidity.
We maintain substantial excess liquidity to meet a broad range of potential cash outflows and collateral needs in a stressed environment.
Asset-Liability Management.
We assess anticipated holding periods for our assets and their expected liquidity in a stressed environment.
We manage the maturities and diversity of our funding across markets, products and counterparties, and seek to maintain liabilities of appropriate tenor relative to our asset base.
Contingency Funding Plan.
We maintain a contingency funding plan to provide a framework for analyzing and responding to a liquidity crisis situation or periods of market stress.
This framework sets forth the plan of action to fund normal business activity in emergency and stress situations.
These principles are discussed in more detail below.
Excess Liquidity Our most important liquidity policy is to pre-fund our estimated potential cash and collateral needs during a liquidity crisis and hold this excess liquidity in the form of unencumbered, highly liquid securities and cash.
We believe that the securities held in our global core excess would be readily convertible to cash in a matter of days, through liquidation, by entering into repurchase agreements or from maturities of resale agreements, and that this cash would allow us to meet immediate obligations without needing to sell other assets or depend on additional funding from credit-sensitive markets.
As of December 2013 and December 2012, the fair value of the securities and certain overnight cash deposits included in our GCE totaled $184.07 billion and $174.62 billion, respectively.
Based on the results of our internal liquidity risk model, discussed below, as well as our consideration of other factors including, but not limited to, an assessment of our potential intraday liquidity needs and a qualitative assessment of the condition of the financial markets and the firm, we believe our liquidity position as of both December 2013 and December 2012 was appropriate.
The table below presents the fair value of the securities and certain overnight cash deposits that are included in our GCE.
## Table 0 ##
The U. S.  dollar-denominated excess is composed of (i) unencumbered U. S.  government and federal agency obligations (including highly liquid U. S.  federal agency mortgage-backed obligations), all of which are eligible as collateral in Federal Reserve open market operations and (ii) certain overnight U. S.  dollar cash deposits.
The nonU.
S.  dollar-denominated excess is composed of only unencumbered German, French, Japanese and United Kingdom government obligations and certain overnight cash deposits in highly liquid currencies.
We strictly limit our excess liquidity to this narrowly defined list of securities and cash because they are highly liquid, even in a difficult funding environment.
We do not include other potential sources of excess liquidity, such as less liquid unencumbered securities or committed credit facilities, in our GCE.
THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements ‰ Discounted cash flow techniques; and ‰ Third-party appraisals.
The firm also considers changes in the outlook for the relevant industry and financial performance of the issuer as compared to projected performance.
Significant inputs include: ‰ Market and transaction multiples; ‰ Discount rates, growth rates and capitalization rates; and ‰ For equity instruments with debt-like features, market yields implied by transactions of similar or related assets, current performance and recovery assumptions, and duration.
Other Cash Instruments.
Other cash instruments consists of non-U.
S.  government and agency obligations, state and municipal obligations, and other debt obligations.
Significant inputs are generally determined based on relative value analyses, which incorporate comparisons both to prices of credit default swaps that reference the same or similar underlying instrument or entity and to other debt instruments for the same issuer for which observable prices or broker quotations are available.
Significant inputs include: ‰ Market yields implied by transactions of similar or related assets and/or current levels and trends of market indices; ‰ Current performance and recovery assumptions and, where the firm uses credit default swaps to value the related cash instrument, the cost of borrowing the underlying reference obligation; and ‰ Duration.
Fair Value of Cash Instruments by Level The tables below present cash instrument assets and liabilities at fair value by level within the fair value hierarchy.
In the tables below: ‰ Cash instrument assets and liabilities are included in “Financial instruments owned, at fair value” and “Financial instruments sold, but not yet purchased, at fair value,” respectively.
‰ Cash instrument assets are shown as positive amounts and cash instrument liabilities are shown as negative amounts.
## Table 1 ##
THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements Investments in Funds at Net Asset Value Per Share Cash instruments at fair value include investments in funds that are measured at NAV of the investment fund.
The firm uses NAV to measure the fair value of its fund investments when (i) the fund investment does not have a readily determinable fair value and (ii) the NAV of the investment fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the investments at fair value.
Substantially all of the firm’s investments in funds at NAV consist of investments in firm-sponsored private equity, credit, real estate and hedge funds where the firm co-invests with third-party investors.
Private equity funds primarily invest in a broad range of industries worldwide, including leveraged buyouts, recapitalizations, growth investments and distressed investments.
Credit funds generally invest in loans and other fixed income instruments and are focused on providing private high-yield capital for leveraged and management buyout transactions, recapitalizations, financings, refinancings, acquisitions and restructurings for private equity firms, private family companies and corporate issuers.
Real estate funds invest globally, primarily in real estate companies, loan portfolios, debt recapitalizations and property.
Private equity, credit and real estate funds are closed-end funds in which the firm’s investments are generally not eligible for redemption.
Distributions will be received from these funds as the underlying assets are liquidated or distributed.
The firm also invests in hedge funds, primarily multidisciplinary hedge funds that employ a fundamental bottom-up investment approach across various asset classes and strategies.
The firm’s investments in hedge funds primarily include interests where the underlying assets are illiquid in nature, and proceeds from redemptions will not be received until the underlying assets are liquidated or distributed.
Many of the funds described above are “covered funds” as defined in the Volcker Rule of the U. S.  Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The Board of Governors of the Federal Reserve System (Federal Reserve Board or FRB) extended the conformance period to July 2022 for the firm’s investments in, and relationships with, certain legacy “illiquid funds” (as defined in the Volcker Rule) that were in place prior to December 2013.
This extension is applicable to substantially all of the firm’s remaining investments in, and relationships with, covered funds in the table below.
The table below presents the fair value of the firm’s investments in funds at NAV and related unfunded commitments.
## Table 2 ##
Note 7.
Derivatives and Hedging Activities Derivative Activities Derivatives are instruments that derive their value from underlying asset prices, indices, reference rates and other inputs, or a combination of these factors.
Derivatives may be traded on an exchange (exchange-traded) or they may be privately negotiated contracts, which are usually referred to as OTC derivatives.
Certain of the firm’s OTC derivatives are cleared and settled through central clearing counterparties (OTC-cleared), while others are bilateral contracts between two counterparties (bilateral OTC).

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>Average for theYear Ended December</td></tr><tr><td><i>in millions</i></td><td>2013</td><td>2012</td></tr><tr><td>U.S. dollar-denominated</td><td>$136,824</td><td>$125,111</td></tr><tr><td>Non-U.S. dollar-denominated</td><td>45,826</td><td>46,984</td></tr><tr><td>Total</td><td>$182,650</td><td>$172,095</td></tr></table>
<table><tr><td></td><td colspan="4">As of December 2016</td></tr><tr><td><i>$ in millions</i></td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td>Total</td></tr><tr><td> Assets</td><td></td><td></td><td></td><td></td></tr><tr><td>Money market instruments</td><td>$ 188</td><td>$ 1,131</td><td>$ —</td><td>$ 1,319</td></tr><tr><td>U.S. government and federal agency obligations</td><td>35,254</td><td>22,403</td><td>—</td><td>57,657</td></tr><tr><td>Non-U.S. government and agency obligations</td><td>22,433</td><td>6,933</td><td>15</td><td>29,381</td></tr><tr><td>Loans and securities backed by:</td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial real estate</td><td>—</td><td>2,197</td><td>1,645</td><td>3,842</td></tr><tr><td>Residential real estate</td><td>—</td><td>11,350</td><td>845</td><td>12,195</td></tr><tr><td>Corporate loans and debt securities</td><td>215</td><td>23,804</td><td>4,640</td><td>28,659</td></tr><tr><td>State and municipal obligations</td><td>—</td><td>960</td><td>99</td><td>1,059</td></tr><tr><td>Other debt obligations</td><td>—</td><td>830</td><td>528</td><td>1,358</td></tr><tr><td>Equities and convertible debentures</td><td>77,276</td><td>7,153</td><td>10,263</td><td>94,692</td></tr><tr><td>Commodities</td><td>—</td><td>5,653</td><td>—</td><td>5,653</td></tr><tr><td>Subtotal</td><td>$135,366</td><td>$82,414</td><td>$18,035</td><td>$235,815</td></tr><tr><td>Investments in funds at NAV</td><td></td><td></td><td></td><td>6,465</td></tr><tr><td> Total cash instrument assets</td><td></td><td></td><td></td><td>$242,280</td></tr><tr><td> Liabilities</td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. government and federal agency obligations</td><td>$ -16,615</td><td>$ -12</td><td>$ —</td><td>$ -16,627</td></tr><tr><td>Non-U.S. government and agency obligations</td><td>-19,137</td><td>-1,364</td><td>-1</td><td>-20,502</td></tr><tr><td>Loans and securities backed by residential real estate</td><td>—</td><td>-3</td><td>—</td><td>-3</td></tr><tr><td>Corporate loans and debt securities</td><td>-2</td><td>-6,524</td><td>-44</td><td>-6,570</td></tr><tr><td>Other debt obligations</td><td>—</td><td>-1</td><td>—</td><td>-1</td></tr><tr><td>Equities and convertible debentures</td><td>-25,768</td><td>-156</td><td>-17</td><td>-25,941</td></tr><tr><td> Total cash instrument liabilities</td><td>$ -61,522</td><td>$ -8,060</td><td>$ -62</td><td>$ -69,644</td></tr><tr><td></td><td colspan="4">As of December 2015</td></tr><tr><td><i>$ in millions</i></td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td>Total</td></tr><tr><td> Assets</td><td></td><td></td><td></td><td></td></tr><tr><td>Money market instruments</td><td>$ 2,725</td><td>$ 1,958</td><td>$ —</td><td>$ 4,683</td></tr><tr><td>U.S. government and federal agency obligations</td><td>42,306</td><td>21,538</td><td>—</td><td>63,844</td></tr><tr><td>Non-U.S. government and agency obligations</td><td>26,500</td><td>5,260</td><td>12</td><td>31,772</td></tr><tr><td>Loans and securities backed by:</td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial real estate</td><td>—</td><td>3,051</td><td>1,924</td><td>4,975</td></tr><tr><td>Residential real estate</td><td>—</td><td>11,418</td><td>1,765</td><td>13,183</td></tr><tr><td>Corporate loans and debt securities</td><td>218</td><td>23,344</td><td>5,242</td><td>28,804</td></tr><tr><td>State and municipal obligations</td><td>—</td><td>891</td><td>101</td><td>992</td></tr><tr><td>Other debt obligations</td><td>—</td><td>1,057</td><td>538</td><td>1,595</td></tr><tr><td>Equities and convertible debentures</td><td>81,252</td><td>8,271</td><td>8,549</td><td>98,072</td></tr><tr><td>Commodities</td><td>—</td><td>3,935</td><td>—</td><td>3,935</td></tr><tr><td>Subtotal</td><td>$153,001</td><td>$80,723</td><td>$18,131</td><td>$251,855</td></tr><tr><td>Investments in funds at NAV</td><td></td><td></td><td></td><td>7,757</td></tr><tr><td>Total cash instrument assets</td><td></td><td></td><td></td><td>$259,612</td></tr><tr><td> Liabilities</td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. government and federal agency obligations</td><td>$ -15,455</td><td>$ -61</td><td>$ —</td><td>$ -15,516</td></tr><tr><td>Non-U.S. government and agency obligations</td><td>-13,522</td><td>-1,451</td><td>—</td><td>-14,973</td></tr><tr><td>Loans and securities backed by:</td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial real estate</td><td>—</td><td>-4</td><td>—</td><td>-4</td></tr><tr><td>Residential real estate</td><td>—</td><td>-2</td><td>—</td><td>-2</td></tr><tr><td>Corporate loans and debt securities</td><td>-2</td><td>-6,456</td><td>-126</td><td>-6,584</td></tr><tr><td>State and municipal obligations</td><td>—</td><td>-2</td><td>—</td><td>-2</td></tr><tr><td>Other debt obligations</td><td>—</td><td>-1</td><td>-1</td><td>-2</td></tr><tr><td>Equities and convertible debentures</td><td>-30,790</td><td>-538</td><td>-66</td><td>-31,394</td></tr><tr><td>Total cash instrument liabilities</td><td>$ -59,769</td><td>$ -8,515</td><td>$ -193</td><td>$ -68,477</td></tr></table>
<table><tr><td><i>$ in millions</i></td><td>Fair Value of Investments</td><td>Unfunded Commitments</td></tr><tr><td> As of December 2017</td><td></td><td></td></tr><tr><td>Private equity funds</td><td> $3,478</td><td> $ 614</td></tr><tr><td>Credit funds</td><td> 266</td><td> 985</td></tr><tr><td>Hedge funds</td><td> 223</td><td> –</td></tr><tr><td>Real estate funds</td><td> 629</td><td> 201</td></tr><tr><td> Total</td><td> $4,596</td><td> $1,800</td></tr><tr><td>As of December 2016</td><td></td><td></td></tr><tr><td>Private equity funds</td><td>$4,628</td><td>$1,393</td></tr><tr><td>Credit funds</td><td>421</td><td>166</td></tr><tr><td>Hedge funds</td><td>410</td><td>–</td></tr><tr><td>Real estate funds</td><td>1,006</td><td>272</td></tr><tr><td>Total</td><td>$6,465</td><td>$1,831</td></tr></table>

Question: In what sections is Non-U.S. government and agency obligations greater than 20000?
Answer: Level 1