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Infinity Bank has the following balance sheet. Assets Amount ($million) Liabilities and Equity Amount ($million) Treasury notes 20 Deposits 150 Local government bonds 30 Floating-rate

Infinity Bank has the following balance sheet.

Assets

Amount

($million)

Liabilities and Equity

Amount

($million)

Treasury notes

20

Deposits

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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