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Consider the simple Financial Intermediary (FI) balance sheet as shown below (in millions of dollars). Before the withdrawal Suppose that depositors unexpectedly withdraw $70 million

image text in transcribed Consider the simple Financial Intermediary (FI) balance sheet as shown below (in millions of dollars). Before the withdrawal Suppose that depositors unexpectedly withdraw $70 million in deposits and the Fl receives no new deposits to replace them. Assume that the FI cannot borrow an more funds in the short-term money markets, and because it cannot wait to get better prices for its assets in the future (as it needs the cash now to meet immedia depositor withdrawals), the FI has to sell any nonliquid assets (corporate loans) at 75 cents on the dollar. What will be the equity (in millions of dollars) of the FI afte adjustments are made for the $70 million of deposit withdrawals? Assume no minimum cash reserve requirements

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