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11-6. The Bank of Your Dreams has a simple balance sheet. The figures are in millions of dollars as follows: Assets Liabilities and Equity Cash
11-6. The Bank of Your Dreams has a simple balance sheet. The figures are in millions of dollars as follows: Assets Liabilities and Equity Cash $ 100 Deposits $4,000 Securities 1,000 Other liabilities 500 Loans 4,000 Equity 600 Total assets 5,100 Total liabilities and equity 5,100 Although the balance sheet is simple, the banks manager encounters a liquidity challenge when depositors withdraw $500 million. If the asset conversion method is used and securities are sold to cover the deposit drain, what happens to the size of Bank of Your
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