2. Lonsmer the balance sneets or banKA and bank I5. bank A is in Milan, Bank B is in New York. The current exchange rate is 1.00 = $1.25. Show the correct balances in each account if a currency trader employed at Bank A buys 100,000 from a currency trader at Bank B for $125,000 using its correspondent relationship with Bank B. Bank A (Milan) 0003 Asset: Liabilities and Equity OLD NEW OLD NEW deposit at B 500 B's Eurodollar deposit $900 $ deposit at B $800 8': deposit 220 Cash in the Vault 200 200 Other Liabilities 300 300 Other Assets 400 400 Owners Equity 500 500 Total Assets 1,740 Total Liabilities & Equity 1,740 @l.00 = $1.25 @ 1.00 = $1.25 Bank B (NYC) 0008 Assets Liabilities and Equity OLD NEW OLD NEW Eurodollar Deposit at A $900 A's euro deposit 500 deposit at A 220 A's 8 deposit $800 Cash in the Vault $200 $200 Other Liabilities $200 $200 Other Assets $600 $600 Owners Equity $350 $350 Total Assets $1,975 Total Liabilities & $1.975 @ 1.00 = $1.25 Equity @ 1.00 = $1.25 a