Show how each of the following would initially affect a bank's assets and liabilities.
a. Someone makes a $10,000 deposit.
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. It will increase the liabilites (deposits) by $10000 and assets (cash) ...
Impact on bank's assets and liabilities