Author Question: Suppose that a new customer opens a checking account and a saving account, placing 50,000 in each. ... (Read 111 times)

penguins · **on:** Jun 30, 2018

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.

Question 2

An appreciation of the U.S. dollar is most likely a result that

A) more dollars are required to obtain foreign currencies.
B) the Fed has pursued an expansionary monetary policy.
C) U.S. interest rates have increased.
D) U.S. bond prices have increased.