When Bank A borrows federal funds from Bank B, the Federal Reserve bank increases one of the banks' accounts on the asset side of the Fed's balance sheet. b) Bank A posts an increase in its asset account, federal funds sold. c) Bank B posts an increase in its asset account, federal funds sold. the Federal Reserve bank increases the deposit account of both Bank A and Bank B. 24) Which of the following is not one of the five C's of lending? a) character b) conditions c) concavity d) control e) capacity