Table 16-3.
-Refer to Table 16-3. If $1,000 is deposited into the First Bank of Fairfield, and the bank takes no other actions, its
A)reserves will increase by $200.
B)liabilities will decrease by $1,000.
C)assets will increase by $1,000.
D)reserves will increase by $800.

Question

Table 16-3. 
-Refer to Table 16-3. If $1,000 is deposited into the First Bank of Fairfield, and the bank takes no other actions, its
A)reserves will increase by $200. 
B)liabilities will decrease by $1,000. 
C)assets will increase by $1,000. 
D)reserves will increase by $800.

Quizplus · Accepted Answer

According to the table, when $1,000 is deposited into the bank, its assets (in the form of cash) increase by $1,000.

Table 16-3. -Refer to Table 16-3. If $1,000 Is Deposited into the Deposited