Answer:
Case A: The Federal Reserve conducts an open market purchase of $90 million U.S. Treasury securities.
Case B: A commercial bank borrows $90 million from the Federal Reserve.
Explanation:
In the two cases that is A and B there will be an change in the balance sheet.
The balance sheet shows the financial position of a business at a given point in time.
It makes use of the accounting equation.
Asset= Liabilities + Owners Equity
In case A there will be an increase of $100 million on the asset side as a result of rise in reserves, and on the other side a rise in owner equity (securities) by $100 million.
In case B there will be a rise in assets by $100 million as a result of increased reserves. On the other side there will be a rise in loans (liabilities) by $100 million
