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Consider the following transactions: (1) Westpac makes a $25m interbank loan to CBA. (2) ANZ repays $35m to the RBA as part of the completion

Consider the following transactions:

(1) Westpac makes a $25m interbank loan to CBA.

(2) ANZ repays $35m to the RBA as part of the completion of a repurchase agreement of government securities made in the past, with no interest/premium.

(3) CBA receives $0.8m in interest on its ESA from the RBA.

(4) NAB receives payment at the redemption of $10m government bonds paid from the governments account at the RBA.

(5) The RBA buys USD from the US Federal Reserve that, in total, are worth AUD 7m.

a. (i) Show how the balance sheet of the RBA is affected by these transactions. Represent all transactions in the same balance sheet and indicate for each transaction the item number as shown in the list. Assume that the US Federal Reserve has an account at the RBA in Australian dollars and that the RBA has an account at the Fed in US dollars.

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