Bank a london 000s assets liabilities and equity old

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Bank A (London) 000s Assets Liabilities and Equity OLD NEW OLD NEW £ deposit at B £ 500 B's Eurodollar deposit $ 850 $ deposit at B $ 1,000 B's £ deposit £ 100 Cash in the Vault £ 200 Other Liabilities £ 300 Other Assets £ 400 Owners Equity £ 775 Total Assets £ 1,600 Total Liabilities & Equity £ 1,600 Bank B (NYC) 000s Assets Liabilities and Equity OLD NEW OLD NEW Eurodollar Deposit at A $ 850 A's £ deposit £ 500 £ deposit at A £ 100 A's $ deposit $ 1,000 Cash in the Vault $ 200 Other Liabilities $ 200 Other Assets $ 1,000 Owners Equity $ 50 Total Assets $ 2,250 Total Liabilities & Equity $ 2,250
Answer: Bank A (London) 000s Assets Liabilities and Equity OLD NEW OLD NEW £ deposit at B £ 500 £ 545 B's Eurodollar deposit $ 850 $ 940 $ deposit at B $ 1,000 $ 910 B's £ deposit £ 100 £ 55 Cash in the Vault £ 200 £ 200 Other Liabilities £ 300 £ 300 Other Assets £ 400 £ 400 Owners Equity £ 775 £ 775 Total Assets £ 1,600 £ 1,600 Total Liabilities & Equity £ 1,600 £ 1,600 Bank B (NYC) 000s Assets Liabilities and Equity OLD NEW OLD NEW Eurodollar Deposit at A $ 850 $ 940 A's £ deposit £ 500 £ 545 £ deposit at A £ 100 £ 55 A's $ deposit $ 1,000 $ 910 Cash in the Vault $ 200 $ 200 Other Liabilities $ 200 $ 200 Other Assets $ 1,000 $ 1,000 Owners Equity $ 50 $ 50 Total Assets $ 2,250 $ 2,250 Total Liabilities & Equity $ 2,250 $ 2,250 Topic: Correspondent Banking Relationships
97) Consider the balance sheets of Bank A and Bank B. Bank A is in London, Bank B is in New York. The current exchange rate is & pound;1.00 = $2.00. Show the correct balances in each account if a currency trader employed at Bank A buys £50,000 from a currency trader at Bank B for $100,000 using its correspondent relationship with Bank B.
Answer: Bank A (London) 000s Assets Liabilities and Equity OLD NEW OLD NEW £ deposit at B £ 500 £ 550 B's Eurodollar deposit $ 850 $ 950 $ deposit at B $ 1,000 $ 900 B's £ deposit £ 100 £ 50 Cash in the Vault £ 200 £ 200 Other Liabilities £ 300 £ 300 Other Assets £ 400 £ 400 Owners Equity £ 775 £ 775 Total Assets £ 1,600 £ 1,600 Total Liabilities & Equity £ 1,600 £ 1,600 Bank B (NYC) 000s Assets Liabilities and Equity OLD NEW OLD NEW Eurodollar Deposit at A $ 850 $ 950 A's £ deposit £ 500 £ 550 £ deposit at A £ 100 £ 50 A's $ deposit $ 1,000 $ 900 Cash in the Vault $ 200 $ 200 Other Liabilities $ 200 $ 200 Other Assets $ 1,000 $ 1,000 Owners Equity $ 50 $ 50 Total Assets $ 2,250 $ 2,250 Total Liabilities & Equity $ 2,250 $ 2,250 Topic: Correspondent Banking Relationships
98) Country USD equiv. Currency per USD Tuesday Monday Tuesday Monday U.K. (Pound) 1.7368 1.7424 0.5758 0.5739 1 Month Forward 1.7369 1.7425 0.5757 0.5739 3 Months Forward 1.738 1.7434 0.5754 0.5736 6 Months Forward 1.7409 1.7461 0.5744 0.5727 Canada (Dollar) 0.8667 0.8653 1.1538 1.1557 1 Month Forward 0.8674 0.866 1.1529 1.1547 3 Months Forward 0.8688 0.8674 1.151 1.1529 6 Months Forward 0.8708 0.8693 1.1484 1.1504 Japan (Yen) 0.008518 0.008495 117.3985 117.7163 1 Month Forward 0.008548 0.008525 116.0631 117.3021 3 Months Forward 0.008616 0.008593 116.0631 116.3738

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