Your bank has the following balance sheet:

Assets Liabilities (unit in million)

Reserves $50 Checkable deposits $200

Securities 50

Loans 150 Bank capital 50

Note: Assume that if a bank has to sell its loans, the price is still the same as original; that is $1 paid for each dollar, not a at a fire-sale price.

c) If there is an unexpected deposit outflow of $100 million, what is the immediate effect on the balance sheet (fill in numbers in the blank)? Is there any liquidity risk?

Assets Liabilities

Reserves $_____ Checkable deposits $________

Securities _____

Loans _____ Bank capital ____