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D 7 15 zets.pdf TEL Oto + Consider the information in Question 3 and ignore all those things that happened in previous questions. Start from the beginning. Brandon borrows $100,000 from Bank A to buy a yacht from Carolyn. Carolyn will deposit that money in her bank, which is Bank B. Bank A lends the money by crediting Brandon's checking account by $100,000 by a few keystrokes. After the loan is made but before that money is transferred to Bank B, the entries in Bank A's balance sheet will look like the following (all in dollars): Assets Uses of Funds Bank A Balance Sheet Liabilities + Net Worth Sources of Funds $65,000 Demand Deposits Other Deposits Reserves Demand deposits $150,000 $1,000,000 Treasury Bonds Other deposits $85,000 Borrowing From the Fed From Fed Funds Market $50,000 $100,000 Borrowing from the Fed - Loans Total $1,350,000 Net Worth $1,500,000 Total $200,000 $1,500,000 Borrowing from the Fed Funds market = Assets Uses of Funds Bank B Balance Sheet Liabilities + Net Worth Sources of Funds $10,000 Demand Deposits Other Deposits Net worth = Reserves $100,000 $940,000 Reserves = Treasury Bonds $35,000 Borrowing From the Fed From Fed Funds Market $0 $30,000 Treasury bonds Loans Total $1,255,000 Net Worth $1,300,000 Total $230,000 $1,300,000 Loans =