Suppose Gloria borrows $1,000 to purchase a car.Which of the following represents the changes in Gloria's personal balance sheet after the bank lends her the money but before she spends it?
A) Assets: loan -$1,000, chequing deposit +$1,000. Liabilities and net worth: no change.
B) Assets: loan +$1,000, chequing deposit -$1,000. Liabilities and net worth: no change.
C) Assets: chequing deposit +$1,000. Liabilities and net worth: loan +$1,000.
D) Assets: chequing deposit +$1,000. Liabilities and net worth: loan -$1,000.
Correct Answer:
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