Q.) The balance sheet of a bank is exposed to liquidity risk on the liability side as well as the asset side. One of the common liquidity risk on the liability side of the balance sheet is deposit drain. The banker manages this liquidity risk through purchased liquidity management and stored liquidity management. Assume a simplified balance sheet of a bank is as below ( all figures are in million Rs)

Liabilities	Assets
Equity	20	Cash	10
Deposits	70	Other assets	90
Borrowings	10
Total	100		100

1. What would the balance look like in case the banker resorts to purchased liquidity management and stored liquidity management.
2. When would the banker resort to purchased liquidity management against stored liquidity management
3. A deposit drain causes a liquidity risk on the liability side of the balance sheet. What factors cause liquidity risk on the assets side of the balance sheet.