If a bank receives a deposit of $3,000 and loans out $2,000 . what changes will occur on the bank's balance sheet (after all checks involved with the loan are cleared)?
a. Reserves decrease by $3,000 . total assets decrease by $1,000 . and total liabilities increase by $3,000.
b. Reserves increase by $1,000 . total assets increase by $2,000 . and total liabilities increase by $3,000.
c. Reserves increase by $3,000 . total assets by increase $3,000 . and total liabilities increase by $3,000.
d. Reserves increase by $3,000 . total assets by increase $2,000 . and total liabilities decrease by $3,000.
e. Reserves increase by $1,000 . total assets increase by $3,000 . and total liabilities increase by $3,000.
E
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Given a production possibilities curve, a point:
a. inside the curve represents unemployment. b. on the curve represents full employment. c. outside the curve is currently unattainable. d. all of these.
If the price of doughnuts decreases, then one would expect the:
A. quantity of doughnuts supplied to decrease. B. quantity of doughnuts supplied to increase. C. supply of doughnuts to decrease. D. supply of doughnuts to increase.
In the macroeconomic short run
What will be an ideal response?
The aggregate demand curve is
A. vertical. B. U shaped. C. horizontal. D. downward sloping.