Consider the information in Question 2 and ignore everything that happened in the previous questions.

Last year Kevin had borrowed $50,000 from Bank B. The loan is due today. Kevin has a saving account at Bank A. He withdraws $50,000 from his saving account at Bank A and pays back his loan to Bank B. After the loan is paid back to Bank B, the entries in Bank A's balance sheet will look like the following (all in dollars):

Demand deposits

Other deposits

Borrowing from the Fed =

Borrowing from the Fed Funds market =

Net worth =

Reserves =

Treasury bonds =

Loans =

Assets Uses of Funds Bank A Balance Sheet Liabilities + Net Worth Sources of Funds $65,000 Demand Deposits Other Deposits Reserves $150,000 $1,000,000 Treasury Bonds $85,000 Borrowing From the Fed From Fed Funds Market $50,000 $100,000 Loans $1,350,000 $1,500,000 Net Worth Total $200,000 $1,500,000 Total Assets Uses of Funds Bank B Balance Sheet Liabilities + Net Worth Sources of Funds $10,000 Demand Deposits Other Deposits Reserves $100,000 $940,000 Treasury Bonds $35,000 Borrowing From the Fed From Fed Funds Market $0 $30,000 Loans $1.255.000 Net Worth $1,300000 Total $230,000 $1,300,000 Total