Question
East Lansing Bank practices 100%-reserve-banking and has zero owners equity. Total deposits at the bank equal $1,000. Which of the following must be true? The
East Lansing Bank practices 100%-reserve-banking and has zero owners equity. Total deposits at the bank equal $1,000. Which of the following must be true?
The bank has $1,000 cash on hand as reserves
The bank has loaned out $1,000
Total liabilities equal $0
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Financial Accounting Theory
Authors: Craig Deegan, H. Bierman
4th Edition
0071013148, 978-0071013147
