Jeff Kaufman decides to bank with Paris First National Bank (PFN). He opens a checking account by depositing $1,000. According to the PFN balance sheet, after this initial $1,000 checkable deposit, there are $1,000 in:

Question

Quizplus · Accepted Answer

When Jeff deposits $1,000 into his checking account at Paris First National Bank, the bank records this as $1,000 in reserves (an asset for the bank) and $1,000 in checkable deposits (a liability for the bank), reflecting the bank's obligation to Jeff.

Jeff Kaufman Decides to Bank with Paris First National Bank