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ECON MACRO 5th Edition by William McEachern
Edition 5ISBN: 978-1305659094ECON MACRO 5th Edition by William McEachern
Edition 5ISBN: 978-1305659094 Exercise 7
MONEY CREATION Show how each of the following would initially affect a bank's assets and liabilities.
a. Someone makes a $10,000 deposit into a checking account.
b. A bank makes a loan of $1,000 by establishing a checking account for $1,000.
c. The loan described in part (b) is spent.
d. A bank must write off a loan because the borrower defaults.
a. Someone makes a $10,000 deposit into a checking account.
b. A bank makes a loan of $1,000 by establishing a checking account for $1,000.
c. The loan described in part (b) is spent.
d. A bank must write off a loan because the borrower defaults.
Explanation
Verified
Verified
a. Deposit $10,000 in checking account: ...
ECON MACRO 5th Edition by William McEachern
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