Question
a. Mickey receives his paycheck of $2,000 for the week and deposits the check at First Bank. Use the table below to show the change
a. Mickey receives his paycheck of $2,000 for the week and deposits the check at First Bank. Use the table below to show the change in assets and liabilities at First Bank resulting from this transaction.
Assets Liabilities Change in Reserves: $ Change in Deposits: $ Change in Loans: $
b. Suppose that Austin gets a loan from First Bank in the amount from the "Loans" cell in the table in part a, and uses it to buy some jewelry from Jenny. Jenny takes the money from Austin and deposits it at Second Bank. Use the table below to show the change in assets and liabilities at Second Bank resulting from this transaction.
Assets Liabilities Change in Reserves: $ Change in Deposits: $ Change in Loans: $
c. Now suppose that Mary gets a loan from Second Bank in the amount from the "Loans" cell in the table in part b, and purchases a television from Jasper with the money. Jasper takes the money from the sale of the television and deposits it into Third Bank. Use the table below to show the change in assets and liabilities at Third Bank resulting from this transaction.
Assets Liabilities Change in Reserves: $ Change in Deposits: $ Change in Loans: $
a. Mickey receives his paycheck of $2,000 for the week and deposits the check at First Bank. Use the table below to show the change in assets and liabilities at First Bank resulting from this transaction.
| Assets | Liabilities |
| Change in Reserves: $ | Change in Deposits: $ |
| Change in Loans: $ |
b. Suppose that Austin gets a loan from First Bank in the amount from the "Loans" cell in the table in part a, and uses it to buy some jewelry from Jenny. Jenny takes the money from Austin and deposits it at Second Bank. Use the table below to show the change in assets and liabilities at Second Bank resulting from this transaction.
| Assets | Liabilities |
| Change in Reserves: $ | Change in Deposits: $ |
| Change in Loans: $ |
c. Now suppose that Mary gets a loan from Second Bank in the amount from the "Loans" cell in the table in part b, and purchases a television from Jasper with the money. Jasper takes the money from the sale of the television and deposits it into Third Bank. Use the table below to show the change in assets and liabilities at Third Bank resulting from this transaction.
| Assets | Liabilities |
| Change in Reserves: $ | Change in Deposits: $ |
| Change in Loans: $ |
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The Handbook Of Financial Modeling
Authors: Jack Avon
2nd Edition
1484265394, 978-1484265390
