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5) Consider the balance sheets of Bank A and Bank B. Bank A is in London, Bank] New York. The current exchange rate is 1.00

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5) Consider the balance sheets of Bank A and Bank B. Bank A is in London, Bank] New York. The current exchange rate is 1.00 = $2.00. Show the correct balance each account if a currency trader employed at Bank A buys 45,000 from a curre: trader at Bank B for $90,000 using its correspondent relationship with Bank B. 5) Bank A (London) 000s Assets Liabilities and Equity OLD NEW OLD NEW B's Eurodollar 850 deposit B's f deposit 100 Other Liabilities 300 deposit at B 500 $ deposit at B 1,00C Cash in the E200 Vault Other Assets 400 Owners Equity 775 Total Liabilities& 1,600 Equity Total Assets 1,600 Bank B (NYC) 000s Assets Liabilities and Equity OLD NEW OLD NEW Eurodollar Deposit at A f deposit at A 100 Cash in the Vault $ 200 Other Assets 1,000 $ 850 A's deposit 500 A's $ deposit 1,00C Other Liabilities Owners Equity S 50 $ 200 Total Assets 2,250 Liabilities & 2,250 Equity 5) Consider the balance sheets of Bank A and Bank B. Bank A is in London, Bank] New York. The current exchange rate is 1.00 = $2.00. Show the correct balance each account if a currency trader employed at Bank A buys 45,000 from a curre: trader at Bank B for $90,000 using its correspondent relationship with Bank B. 5) Bank A (London) 000s Assets Liabilities and Equity OLD NEW OLD NEW B's Eurodollar 850 deposit B's f deposit 100 Other Liabilities 300 deposit at B 500 $ deposit at B 1,00C Cash in the E200 Vault Other Assets 400 Owners Equity 775 Total Liabilities& 1,600 Equity Total Assets 1,600 Bank B (NYC) 000s Assets Liabilities and Equity OLD NEW OLD NEW Eurodollar Deposit at A f deposit at A 100 Cash in the Vault $ 200 Other Assets 1,000 $ 850 A's deposit 500 A's $ deposit 1,00C Other Liabilities Owners Equity S 50 $ 200 Total Assets 2,250 Liabilities & 2,250 Equity

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