Question
1. A depository institution (DI) has the following balance sheet (all amounts are in millions). It expected a deposit drain of $25 million. Assets Deposits
1. A depository institution (DI) has the following balance sheet (all amounts are in millions). It expected a deposit drain of $25 million.
| Assets | Deposits | ||
| Cash | $20 | Deposits | $134 |
| Loans | 100 | Borrowed funds | 22 |
| Securities | 45 | Equity | 9 |
| Total assets | 165 | Total liabilities and equity | 165 |
a. Show the DIs balance sheet if it uses purchased liquidity to offset the expected drain.
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Corporate Financial Management
Authors: Glen Arnold
4th Edition
0273719068, 978-0273719069
