The balance sheet below represents the current financial situation of a commercial bank named Novatia Bank. Suppose that a 15-year-old takes the $150 cash that she received for her birthday and deposits it in her checking account at Novatia Bank. Assets What will happen to the bank's liabilities after the $150 deposit. Cash: $650 Stock Shares: $950 Property: $1050 Checkable Deposits: $750 Balance Sheet Deposits increase cash assets, so they do not affect the liabilities side of a bank's balance sheet. The value of checkable deposits will decrease by $150. The value of checkable deposits will increase by $150. The value of stock shares will decrease by $150. Liabilites The value of stock shares will increase by $150. What will happen to the bank's assets after the $150 deposit? The value of propery holdings will decrease by $150. The value of cash holdings will increase by $150. The value of cash holdings will decrease by $150. Since deposits are a liability, there is no change to the asset side of the bank's balance sheet. The value of propery holdings will increase by $150.

The balance sheet below represents the current financial situation of a commercial bank named Novatia Bank. Suppose that a 15-year-old takes the $150 cash that she received for her birthday and deposits it in her checking account at Novatia Bank. Assets What will happen to the bank's liabilities after the $150 deposit. Cash: $650 Stock Shares: $950 Property: $1050 Checkable Deposits: $750 Balance Sheet Deposits increase cash assets, so they do not affect the liabilities side of a bank's balance sheet. The value of checkable deposits will decrease by $150. The value of checkable deposits will increase by $150. The value of stock shares will decrease by $150. Liabilites The value of stock shares will increase by $150. What will happen to the bank's assets after the $150 deposit? The value of propery holdings will decrease by $150. The value of cash holdings will increase by $150. The value of cash holdings will decrease by $150. Since deposits are a liability, there is no change to the asset side of the bank's balance sheet. The value of propery holdings will increase by $150.

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Monetary System

Section: Chapter Questions

Problem 5PA

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