Marquis decides to bank with First National Bank (FNB). He opens a checking account by depositing $1,000 . According to the FNB balance sheet, after this initial $1,000 checkable deposit, there are $1,000 in
a. reserves and $1,000 in checkable deposits.
b. liabilities and $2,000 in checkable deposits.
c. checkable deposits and $0 in assets.
d. assets and $0 in liabilities.
e. reserves and $0 in liabilities.
A
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Mortgage-backed securities are large blocks of mortgages which have been repackaged into ________ and sold to pension funds and other large investors
A) stocks B) bonds C) mutual funds D) certificates of deposit
Consumers in monopolistically competitive markets face a trade-off between paying prices greater than marginal costs and purchasing products that are more closely suited to their tastes
Indicate whether the statement is true or false
Corporations are able to raise large amounts of financial capital because
A) of the tax breaks corporations are given relative to partnerships or proprietorships. B) of the elimination of the problem of separation of ownership and control. C) of limited liability and the treatment of a corporation as an individual entity. D) of their greater ability to monitor the performance of decision makers.
Monopolistic competition will include producers of poultry and dairy products
a. True b. False Indicate whether the statement is true or false