Using Taccounts for Second Bank please show the initial eff

. Using T-accounts for Second Bank, please show the initial effects of the following events. Use a separate T-account for each.

a. A cash deposit of $12,000 into a checking account.
b. A $5,000 check is deposited into a savings account.
c. An open market purchase of $800 million. The Fed buys $800 million worth of securities from Second Bank.

Solution

(a)                                     Second Bank

Assets

Liabilities

(b)                                     Second Bank

Assets

Liabilities

(c)                                     Second Bank

Assets

Liabilities