Using the T-accounts of the First National Bank and the Second National Bank given in this chapter, describe what happens when Jane Brown writes a check for $90 on her account at the First National Bank to pay her friend Joe Green, who in turn deposits the check in his account at the Second National Bank.

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Rate-sensitive assets First National Bank Assets $20 million Liabilities Rate-sensitive liabilities $50 million Variable-rate CDs Variable-rate and short-term loans Short-term securities Money market deposit accounts Fixed-rate assets $80 million Fixed-rate liabilities Reserves Long-term loans Long-term securities Checkable deposits Savings deposits Long-term CDs Equity capital $50 million