Question: 1 . Balance sheet ( $ million ) Cash $ 1 0 Deposit $ 6 8 Loans 5 0 Equity 7 Securities 1 5 The

1. Balance sheet ($ million)
Cash $10 Deposit $68
Loans 50 Equity 7
Securities 15
The bank is expecting a $15 net deposit drain. Show the banks balance sheet if:
a. The bank purchases liability to offset this expected drain.
b. The bank uses the asset side liquidity to finance this expected drain.

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