Suppose a Bank Lends You $1,000 to Purchase a Car $- \$ 1,000$

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, $- \$ 1,000$