a) In a database system within a banking application, transaction A is transferring $1200 from account ACC1 to account ACC2. At the same time, transaction B is processing every account record and adding interest payments by increasing each balance by 1.5%. Initially, ACC1 has a balance of $4000 and ACC2 $6500. The following sequence of operations takes place:

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Based on the provided information, we can analyze the sequence of operations that take place in the given banking application:

1. Initialize the database system with the initial balances for accounts ACC1 and ACC2:
- ACC1 has a balance of $4000.
- ACC2 has a balance of $6500.

2. Start processing transaction B, which adds interest payments by increasing each account's balance by 1.5%:
- For ACC1, increase the balance by (1.5/100) * $4000 = $60.
- For ACC2, increase the balance by (1.5/100) * $6500 = $97.50.

3. Start processing transaction A, which transfers $1200 from account ACC1 to account ACC2:
- Deduct $1200 from ACC1's balance: $4000 - $1200 = $2800.
- Add $1200 to ACC2's balance: $6500 + $1200 = $7700.

4. The final balances after the sequence of operations:
- ACC1 has a balance of $2800.
- ACC2 has a balance of $7700.

In summary, after the sequence of operations, ACC1's balance is reduced to $2800, while ACC2's balance is increased to $7700.