(1.) Suppose you are a manager of a bank with the following balance sheet:

Assets (in millions)		Liabilities (in millions)
Reserves	$30	Checkable Deposits	$200
Securities	$150	Time Deposits	$600
Loans	$820	Borrowings	$100

Suppose you are required to hold 10.00% of checkable deposits as reserves with the central bank. If you were faced with an unexpected withdrawal of $30 million from time deposits, would you rather:

I. Draw down $10 million of excess reserves and borrow the remain $20 million from other banks? or

II. Draw down $10 million of excess reserves and sell securities of $20 million?

Explain your choice.