A bank loans Kellie's Print Shop $350,000 to remodel a building near campus to use as a new store.On their respective balance sheets,this loan is
A) an asset for the bank and a liability for Kellie's Print Shop.The loan increases the money supply.
B) an asset for the bank and a liability for Kellie's Print Shop.The loan does not increase the money supply.
C) a liability for the bank and an asset for Kellie's Print Shop.The loan increases the money supply.
D) a liability for the bank and an asset for Kellie's Print Shop.The loan does not increase the money supply.
Correct Answer:
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