A bank issues shares and invests in corporate bonds issued by companies that are depositors at the bank. Shareholders of the bank are not depositors of the bank.

a. Using a flow-of-funds diagram, represent the movements of funds (indicating their nature: bank deposits or central bank deposits) and financial instruments in the financial system associated with the above operations. Incorporate in your diagram the movements of central bank money, if any, as well as creation and destruction of private money.