Table 10-1

-Refer to the Table 10-1.If $1000 is deposited into the First Bank of Dawson City,which of the following happens?
A)Reserves will decrease by $800.
B)Liabilities will decrease by $1000.
C)Assets will increase by $1000.
D)Reserves will increase by $800.

Question

Table 10-1
 
-Refer to the Table 10-1.If $1000 is deposited into the First Bank of Dawson City,which of the following happens?
A)Reserves will decrease by $800. 
B)Liabilities will decrease by $1000. 
C)Assets will increase by $1000. 
D)Reserves will increase by $800.

Quizplus · Accepted Answer

When $1000 is deposited into the First Bank of Dawson City, it becomes an asset for the bank as they now have more cash. Therefore, the bank's assets will increase by $1000.

Table 10-1 -Refer to the Table 10-1.If $1000 Is Deposited into the Is