A bank has the following balance sheet. It expects a net deposit drain of $500,000.

Assets		Liabilities and Equity
Cash	$300,000		Deposits	$3,115,000
Loans	2,000,000		Equity	385,000
Securities	1,200,000
Total Asset	$3,500,000		Total Liabilities and Equity	$3,500,000

1. What is a net deposit drain and why is it of concern for the bank? (3 points)
2. Show the banks balance sheet if it uses stored liquidity to offset the expected drain. (8 points)