3. An FI has the following Balance Sheet (in millions of dollars):

Assets Liabilities and Equity

___________________________________________

Cash $20 Deposits $100

Loans $80 Equity $10

Securities $10

The FI is expecting a $25 million net deposit drain. Show the FI's new balance sheet if:

1. The Stored Liquidity method is used to meet the liquidity shortfall.

2. The FI purchases liabilities to offset this expected drain.