Table 14.2

-Refer to Table 14.2 for the balance sheet of Countybank. Which of the following transactions is most likely to have just taken place at Countybank?

Question

Table 14.2
 
-Refer to Table 14.2 for the balance sheet of Countybank. Which of the following transactions is most likely to have just taken place at Countybank?

Quizplus · Accepted Answer

The increase in deposits of $1,000 suggests that a customer deposited the money into Countybank, rather than a withdrawal or purchase of a security, which would decrease the bank's assets. The bank borrowing from the Federal Reserve would increase its liabilities, not its assets. Therefore, the most likely transaction is a customer depositing $1,000 into their checking account.

Table 14.2 -Refer to Table 14.2 for the Balance Sheet of Countybank