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You are a U . S . importer desiring to purchase merchandise from an Italy exporter invoiced in Euros, at a cost of 1 6

You are a U.S. importer desiring to purchase merchandise from an Italy exporter invoiced in Euros, at a cost of 160,000. You will contact your U.S. bank A (where of course you have an account denominated in U.S. dollars) and inquire about the exchange rate, which the bank quotes as 0.6250$1.00. Consider you accept this price. Bank A then instructs its correspondent bank B in Italy to pay the Italy exporter the amount of the purchase. What will happen to the balance sheet of Bank B based on the correspondence relation between bank A and B, and based on the relationship between Bank B and the Italian exporter? (i.e. increase or decrease in asset or liability, by what amount in what currency)
a. Between bank A and B:
(Asset or Liability) will _
(increase or decrease) in or $ ) in the amount of
(Just answer with numbers, no comma or symbols).
b. Between Bank B and the Italian exporter:
(Asset or Liability) will _
(increase or decrease) in or $ ) in the amount of
(Just answer with numbers, no comma or symbols).
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