If Jordan deposits $1,200 cash into his checking account, his bank's assets rise by $1,200 and its liabilities rise by $1,200.

Question

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When Jordan deposits cash into his checking account, the bank's assets increase by the same amount (in this case, $1,200). This is because the bank now has more money in its possession. However, the bank's liabilities also increase by $1,200 because the bank owes Jordan that money and must be able to return it to him upon request.

If Jordan Deposits $1,200 Cash into His Checking Account, His