A bank loans Greg's Ice Cream $250,000 to remodel a building near campus to use as a new store.On their respective balance sheets,this loan is
A) a liability for the bank and an asset for Greg's Ice Cream.The loan increases the money supply.
B) a liability for the bank and an asset for Greg's Ice Cream.The loan does not increase the money supply.
C) an asset for the bank and a liability for Greg's Ice Cream.The loan increases the money supply.
D) an asset for the bank and a liability for Greg's Ice Cream.The loan does not increase the money supply.
Correct Answer:
Verified
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