When a customer deposits $1,000 in a bank,the deposit is:
A) an asset of the Federal Reserve.
B) included in M1 if it is currently in a commercial bank's vault.
C) a liability to the customer.
D) an asset to a commercial bank if it is currently in the bank's vault.
E) a liability for the bank as the bank owes it to the customer.
Correct Answer:
Verified
Q21: Suppose a bank has $8,000 in checkable
Q22: Suppose a bank has $6,000 in checkable
Q23: A bank's net worth is:
A)equal to assets
Q24: Banks help to overcome the problem of
Q25: If a bank has $1 million in
Q27: If a bank has $6,000 in checkable
Q28: Which of the following is true of
Q29: On a bank's balance sheet,the value of
Q30: A bank can legally hold reserves as:
A)gold
Q31: When a customer deposits $100 into a
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