Explore BrainMass
Share

Explore BrainMass

    Bank's assets and liabilities

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com October 9, 2019, 5:22 pm ad1c9bdddf
    https://brainmass.com/economics/banking/bank-s-assets-and-liabilities-55484

    Solution Preview

    a. It will increase the liabilites (deposits) by $10000 and assets (cash) ...

    Solution Summary

    Impact on bank's assets and liabilities

    $2.19