Alfie has been given a loan for $10,000,and he deposited the full loan amount into his checking account.How would this be reflected on his bank's balance sheet?
A) Loans would increase by $10,000,but deposits would decrease by less than $10,000.
B) Loans would be unaffected,but deposits would increase by $10,000.
C) Loans and deposits would be unaffected.
D) Loans would decrease and deposits would increase by the same amount as the deposit.
E) Loans and deposits would increase by the same amount as the deposit.
Correct Answer:
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