Question
Infinity Bank has the following balance sheet. Assets Amount Liabilities and Equity Amount ($million) Treasury notes 20 Deposits ($million) 150 Local government bonds 30
Infinity Bank has the following balance sheet. Assets Amount Liabilities and Equity Amount ($million) Treasury notes 20 Deposits ($million) 150 Local government bonds 30 Floating-rate notes 25 Mortgage loans 150 Equity 25 Total 200 Total 200 Infinity Bank expects a net deposit drain of $10 million. Detail the changes on the balance sheet if the bank uses the purchased liquidity method to offset this expected drain.
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
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9780077641849, 77861663, 77641841, 978-0077861667
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