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Infinity Bank has the following balance sheet. Assets Amount ($million) Liabilities and Equity Amount ($million) Treasury notes 20 Deposits 150 Credit card loans 30 Floating-rate
Infinity Bank has the following balance sheet.
Assets | Amount ($million) | Liabilities and Equity | Amount ($million) |
Treasury notes | 20 | Deposits | 150 |
Credit card loans | 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 stored liquidity method to offset this expected drain.
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