Suppose that a new customer opens a checking account and a saving account, placing $50,000 in each. Later, the bank makes a loan of $100,000 to a business firm. For this bank
A) assets increased by $100,000 because the loan is an asset, and liabilities increased by $100,000 because the checking and saving accounts are liabilities.
B) assets increased by $100,000 because the checking and saving accounts are assets, and liabilities increased by $100,000 because the loan is a liability.
C) assets increased by $50,000 because the saving account is an asset, while liabilities increased by $50,000 because the checking account is a liability.
D) assets remained unchanged but liabilities increased by $100,000 because of the loan.
A
You might also like to view...
An oligopoly is a market situation in which
A) there are many firms producing differentiated products. B) there is a single firm producing several varieties of a product. C) all the sellers act independently of the others. D) there are very few sellers and they recognize their strategic dependence on one another.
A graph that shows the percentage of the families on one axis and the percentage of income on the other is called the:
a. Budget-distribution curve. b. Income-consumption curve. c. Lorenz curve. d. Marx curve.
We showed that, when demand is linear and marginal cost is constant, the Stackelberg leader produces the monopoly output while the Stackelberg follower produces half the monopoly output. If the leader and follower now enter a simultaneous quantity setting game, why can't the leader maintain the same equilibrium?
What will be an ideal response?
Social inequalities disappear when income inequalities are eliminated
Indicate whether the statement is true or false