2. Consider the balance sheet for the DI listed below: ( LG 21- 2)

Assets (in millions) Liabilities Cash $10 Deposits $68 Securities 15 Equity 7 Loans 50 The DI is expecting a $15 million net deposit drain. Show the DI’s balance sheet under these two conditions:

The DI purchases liabilities to offset this expected drain.

The stored liquidity management is used to meet the liquidity shortfall.