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 savings account by $100,000. After the loan is made and before 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 Other deposits Borrowing from the Fed Borrowing from the Fed Funds market Net worth = Reserves = Treasury bonds = Loans Bank A Balance Sheet Assets Liabilities+Net Worth Uses of Funds Sources of Funds Reserves Demand Deposits $65,000 $150,000 Other Deposits $1,000,000 Treasury Bonds $85,000 Borrowing From the Fed $50,000 From Fed Funds Market $100,000 $1,350,000 | Net Worth $1,500,000 | Total Loans $200,000 Total $1,500,000 Bank B Balance Sheet Assets Liabilities+Net Worth Uses of Funds Sources of Funds $10,000 Demand Deposits Other Deposits Reserves $100,000 $940,000 $35,000 Borrowing Treasury Bonds From the Fed $0 From Fed Funds Market $30,000 $1,255,000 | Net Worth Loans $230,000 Total $1,300,000 Total $1,300,000