Banks assets and liabilities


Problem: Show how each of the following would initially affect a bank's assets and liabilities.

1. Someone makes a $10,000 deposit.

2. A bank makes a loan of $1,000 by establishing a checking account for $1,000.

3. The loan described in part (b) is spent.

4. A bank must write off a loan because the borrower defaults.

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Macroeconomics: Banks assets and liabilities
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