A deposit inflow means that a customer is depositing money into their account. This increases the bank's total deposit liabilities (as they now owe the customer the deposited amount) and total assets (as they now have that money as cash reserves or can use it to make loans). Therefore, the correct answer is (C) increases total deposit liabilities and total assets.

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A Deposit Inflow

Question 35

Multiple Choice

A deposit inflow

A) decreases total deposit liabilities and reserve assets.
B) decreases total deposit liabilities and increases assets.
C) increases total deposit liabilities and total assets.
D) increases total deposit liabilities and decreases assets.

Correct Answer: