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(Money Creation) Show how each of the following would initially affect a bank's assets and liabilities. a. Someone makes a $10,000 deposit into a checking
(Money Creation) Show how each of the following would initially affect a bank's assets and liabilities. a. Someone makes a $10,000 deposit into a checking account. 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.
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