Suppose a bank lends you $1,000 to purchase a car.Which of the following correctly represents the changes in the bank's balance sheet before you spend the money?
A) assets: loans,+$1,000; liabilities and net worth: checking deposits,+$1,000
B) assets: loans,-$1,000,checking deposits,+$1,000; liabilities and net worth: no change
C) assets: loans,+$1,000,checking deposits,-$1,000; liabilities and net worth: no change
D) assets: checking deposits,+$1,000; liabilities and net worth: loans,+$1,000
E) assets: checking deposits,+$1,000; liabilities and net worth: loans,-$1,000
Correct Answer:
Verified
Q40: The federal funds rate is the interest
Q43: If a bank sells a $1,000 security
Q58: The immediate effect of a member bank's
Q121: Suppose you borrow $1,000 to purchase a
Q122: Exhibit 14-1 Q126: Exhibit 14-1 Q127: In order to increase the money supply, Q127: What essential factor enables commercial banks to Q128: Tony deposits $2,000 in cash at the Q130: Exhibit 14-1 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
Exhibit 14-1
Exhibit 14-1
Exhibit 14-1
