Use the balance sheet for the following questions.
Table 29-2

-Refer to Table 29-2.If $1,000 is deposited into the First Bank of Mason City,and the bank takes no other actions,it's
A)total reserves will increase by $200.
B)liabilities will decrease by $1,000.
C)assets will increase by $1,000.
D)required reserves will increase by $800.

Question

Use the balance sheet for the following questions.
Table 29-2
 
-Refer to Table 29-2.If $1,000 is deposited into the First Bank of Mason City,and the bank takes no other actions,it's
A)total reserves will increase by $200. 
B)liabilities will decrease by $1,000. 
C)assets will increase by $1,000. 
D)required reserves will increase by $800.

Quizplus · Accepted Answer

When $1,000 is deposited into the First Bank of Mason City, their assets will increase by $1,000, specifically in the form of cash. There is no indication in the balance sheet that liabilities will decrease, reserves will increase or required reserves will increase.

Use the Balance Sheet for the Following Questions