-Refer to Table 10-1. If $1000 is deposited into the First Bank of Dawson City, what will happen?
A) Reserves will decrease by $800.
B) Liabilities will decrease by $1000.
C) Assets will increase by $1000.
D) Reserves will increase by $800.

Question

-Refer to Table 10-1. If $1000 is deposited into the First Bank of Dawson City, what will happen?
A) Reserves will decrease by $800. 
B) Liabilities will decrease by $1000. 
C) Assets will increase by $1000. 
D) Reserves will increase by $800.

Quizplus · Accepted Answer

When $1000 is deposited into a bank, the bank's assets increase by $1000 because the deposit is considered an asset for the bank.