Suppose that depositors unexpectedly withdraw $75 million in deposits and the FI receives no new deposits to replace them. Assume that the FI cannot borrow any more funds in the short-term money markets, and because it cannot wait to get better prices for its assets in the future (as it needs the cash now to meet immediate depositor withdrawals), the FI has to sell any nonliquid assets at 50 cents on the dollar. Show the FIs balance sheet after adjustments are made for the $75 million of deposit withdrawals.

Assets Liabilities/Equity Cash assets $50 Deposit $200

Nonliquid assets $225 Equity $75

$275 $275