Jeff Kaufman decides to bank with Paris First National Bank ...

[yoooooman]

Jeff Kaufman decides to bank with Paris First National Bank (PFN). He opens a checking account by depositing 1,000 . According to the PFN 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.

Question 2

Countries are poor because they cannot afford to save and invest is called the:
 a. vicious circle of poverty. b. savings-investment trap.
  c. LDC trap. d. cycle of insufficient credit.

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Answer to Question 1

a

Answer to Question 2

a