Multiple Choice
Suppose a bank lends you $1,000 to purchase a car.Which of the following correctly represents the changes in the bank's balance sheet before you spend the money?
A) assets: loans,+$1,000; liabilities and net worth: checking deposits,+$1,000
B) assets: loans,-$1,000,checking deposits,+$1,000; liabilities and net worth: no change
C) assets: loans,+$1,000,checking deposits,-$1,000; liabilities and net worth: no change
D) assets: checking deposits,+$1,000; liabilities and net worth: loans,+$1,000
E) assets: checking deposits,+$1,000; liabilities and net worth: loans,-$1,000
Correct Answer:
Verified
Correct Answer:
Verified
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