Suppose a bank lends you $1,000 to purchase a car.Which of the following correctly represents the changes in the bank's balance sheet before you spend the money?
A) Assets: loans,+$1,000;Liabilities and net worth: checking deposits,+$1,000
B) Assets: loans,-$1,000,checking deposits,+$1,000;Liabilities and net worth: no change
C) Assets: loans,+$1,000,checking deposits,-$1,000;Liabilities and net worth: no change
D) Assets: checking deposits,+$1,000;Liabilities and net worth: loans,+$1,000
E) Assets: checking deposits,+$1,000;Liabilities and net worth: loans,-$1,000
Correct Answer:
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