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1. (Money Creation Show how each of the following would initially affect a bank's assets and liabilities. 2. Someone makes a $10,000 deposit into a
1. (Money Creation Show how each of the following would initially affect a bank's assets and liabilities. 2. Someone makes a $10,000 deposit into a checking account. 3. A bank makes a loan of $1,000 by establishing a checking account for $1,000. 4. The loan described in part(b) is spent. 5. A bank must write off a loan because the borrower defaults
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