Question: Asset Amount (mil) Liabilities and Equity Amount (mill) Treasury notes 20 Deposit 150 Local Gov bonds 30 Floating rate notes 25 Mortgage loans 150 Equity

Asset Amount (mil) Liabilities and Equity Amount (mill)
Treasury notes 20 Deposit 150
Local Gov bonds 30 Floating rate notes 25
Mortgage loans 150 Equity 25
Total 200 Total 200

Given the balance sheet. This bank expects a net deposit drain of $10mil. Detail the changes on the balance sheet if the bank uses the purchased liquidity method to offset this expected drain

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