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Tom Hayden repays a $5,000 loan with cash to Worcester State Bank. How is the bank's balance sheet affected by this transaction? Group of answer

Tom Hayden repays a $5,000 loan with cash to Worcester State Bank. How is the bank's balance sheet affected by this transaction?

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Vault Cash increases, and Loans decrease.

Loans decrease, and customer deposits decrease.

Loans decrease, and customer deposits increase.

Loans decrease, and Deposits at the Central Bank increase.

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