4) Consider the balance sheets of Bank A and Bank B. Bank A is in Milan, Bank B 4) New York. The current exchange rate is 1.00 $1.25. Show the correct balance each account if a currency trader employed at Bank A buys 100,000 from a curr trader at Bank B for $125,000 using its correspondent relationship with Bank B. Bank A (Milan) 000s Liabilities and Equity Assets OLD NEW OLD NEW Eurodollar900 deposit deposit at B 500 B'se deposit at E $ 800 deposit 220 Cash in the Vault 200 300 e 300 Liabilities Ownerse 500 Equity- Total Liabilities & Equity a 1,740 1.00 1.25 Other Assets 400 500 Total Assets @1.00 $1.25 1,740 Bank B (NYC) 000s Assets OLD Liabilities and Equity NEW NEW A's euro deposit A's $ OLD $500 Eurodollar Deposit at A 900 deposit 800 Other e 200 Liabilities deposit at 220 Cash in the e 200 Vault 200 600 600 Owners 350 Other Assets 600 Equity_ Tota Liabilities Total Assets e100 $1.25 1,975 & Equity 1.00 = e 1,975 4) Consider the balance sheets of Bank A and Bank B. Bank A is in Milan, Bank B 4) New York. The current exchange rate is 1.00 $1.25. Show the correct balance each account if a currency trader employed at Bank A buys 100,000 from a curr trader at Bank B for $125,000 using its correspondent relationship with Bank B. Bank A (Milan) 000s Liabilities and Equity Assets OLD NEW OLD NEW Eurodollar900 deposit deposit at B 500 B'se deposit at E $ 800 deposit 220 Cash in the Vault 200 300 e 300 Liabilities Ownerse 500 Equity- Total Liabilities & Equity a 1,740 1.00 1.25 Other Assets 400 500 Total Assets @1.00 $1.25 1,740 Bank B (NYC) 000s Assets OLD Liabilities and Equity NEW NEW A's euro deposit A's $ OLD $500 Eurodollar Deposit at A 900 deposit 800 Other e 200 Liabilities deposit at 220 Cash in the e 200 Vault 200 600 600 Owners 350 Other Assets 600 Equity_ Tota Liabilities Total Assets e100 $1.25 1,975 & Equity 1.00 = e 1,975