The balance sheet below represents the current financial situation of a commercial bank named Novatia Bank. Suppose that a 15-year-old takes the $150 cash that she received for her birthday and deposits it in her checking account at Novatia Bank.
Balance Sheet
Cash: $650 Stock Shares:$950
Property:$1050 Checkable Deposits: $750
1. What will happen to the bank\'s liabilities after the $150 deposit.
a. The value of stock shares will increase by $150.
b. Deposits increase cash assets, so they do not affect the liabilities side of a bank's balance sheet.
c. The value of checkable deposits will decrease by $150.
d. The value of checkable deposits will increase by $150.
e. The value of stock shares will decrease by $150.
2. What will happen to the bank's assets after the $150 deposit?
a. The value of cash holdings will increase by $150.
b. The value of propery holdings will decrease by $150.
c. Since deposits are a liability, there is no change to the asset side of the bank's balance sheet.
d. The value of propery holdings will increase by $150.
e. The value of cash holdings will decrease by $150.