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Macroeconomics 10th Edition by William McEachern
Edition 10ISBN: 978-1133188131Macroeconomics 10th Edition by William McEachern
Edition 10ISBN: 978-1133188131 Exercise 3
MONEY CREATION Show how each of the following would initially affect a bank's assets and liabilities.
a. Someone makes a $10,000 deposit into a checking account.
b. A bank makes a loan of $1,000 by establishing a checking account for $1,000.
c. The loan described in part (b) is spent.
d. A bank must write off a loan because the borrower defaults.
a. Someone makes a $10,000 deposit into a checking account.
b. A bank makes a loan of $1,000 by establishing a checking account for $1,000.
c. The loan described in part (b) is spent.
d. A bank must write off a loan because the borrower defaults.
Explanation
Verified
Verified
a.Deposit $10,000 in checking account:
...
Macroeconomics 10th Edition by William McEachern
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