Table 13-1

-Refer to Table 13-1.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

Table 13-1
 
-Refer to Table 13-1.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 bank, the bank's assets increase by $1,000 as it now has more deposits. This is shown by the entry in the "Assets" column in the table. The other options are not correct as there is no mention of any changes in reserves or liabilities.

Table 13-1 -Refer to Table 13-1.If $1,000 Is Deposited into the First