Consider the information in the previous question. Brandon borrows $100,000 from Bank A to buy a yacht from Carolyn. Bank A lends the money by crediting Brandon's checking account with $100,000. Carolyn will later deposit that money in her bank, which is Bank B. After that money is transferred to Bank B, the entries in Bank A's balance sheet will look like the following (all in dollars): Demand deposits - Sum of Other Deposits Total Borrowing = Reserves = Treasury bonds - Loans = Hint: Note that Bank A does not have enough reserves to transfer to Bank B. And the Fed does not like negative reserves. So assume that Bank A borrows the money from somewhere. Bank A Balance Sheet Assets Liabilities and Net Worth Uses of Funds Sources of Funds Reserves $65,000 Deposits Demand Deposits Savings Deposits Small Time Deposits Large Time Deposits $150,000 $750,000 $250,000 $500,000 Treasury Bonds $85,000 Borrowing From the Fed From the Fed Funds Market $50,000 $100,000 Loans Total $1,850,000 Net Worth $2,000,000 Total $200,000 $2,000,000 Bank B Balance Sheet Assets Liabilities and Net Worth Uses of Funds Sources of Funds Reserves $10,000 Deposits Demand Deposits Savings Deposits Small Time Deposits Large Time Deposits $100,000 $700,000 $240,000 $650,000 Treasury Bonds $40,000 Borrowing From the Fed From the Fed Funds Market $0 $30,000 Loans Total $1,900,000 Net Worth $1,950,000 Total $230,000 $1,950,000