10. Summer Bank has the following balance sheet (in millions). It expects a net deposit drain of $15 million.

Assets Liabilities and Equity

Cash $10 Deposits $68

Loans 50 Equity 7

Securities 15

Total assets $75 Total liabilities and equity $75

To offset or meet the expected drain, which of the following statement is true?

A. Under purchased liquidity management, on the new balance sheet, the Assets side will have the following changes: the amounts of both Cash and Securities will decrease.

B. Under purchased liquidity management, the Liabilities and Equity side of the new balance sheet remains the same.

C. Under purchased liquidity management, on the new balance sheet, both Total Assets and Total Liabilities and Equity will decrease to $60 million.

D. Under stored liquidity management, on the new balance sheet, both Total Assets and Total Liabilities and Equity will decrease to $60 million.

E. Under stored liquidity management, on the new balance sheet, the Assets side will have the following changes: the amounts of both Cash and Securities will remain the same.