Question 5

The AllStar Bank has the following balance sheet:

Assets (in millions)			Liabilities (in millions)
Cash	$50		Deposits	$80
Other assets	$150		Borrowed funds	$60
			Other Liabilities	$60
Total	$200		Total	$200

Its largest customer decides to exercise a $5 million loan commitment. Show how the new balance sheet changes if AllStar uses stored liquidity management.

Assets (in millions)			Liabilities (in millions)
Cash	$45		Deposits	$80
Other assets	$155		Borrowed funds	$60
			Other Liabilities	$60
Total	$200		Total	$200

Assets (in millions)			Liabilities (in millions)
Cash	$40		Deposits	$80
Other assets	$160		Borrowed funds	$60
			Other Liabilities	$60
Total	$200		Total	$200

Assets (in millions)			Liabilities (in millions)
Cash	$50		Deposits	$80
Other assets	$160		Borrowed funds	$70
			Other Liabilities	$60
Total	$210		Total	$210

Assets (in millions)			Liabilities (in millions)
Cash	$35		Deposits	$80
Other assets	$165		Borrowed funds	$60
			Other Liabilities	$60
Total	$200		Total	$200

Assets (in millions)			Liabilities (in millions)
Cash	$50		Deposits	$80
Other assets	$155		Borrowed funds	$65
			Other Liabilities	$60
Total	$205		Total	$205