A bank loans Greg's Ice Cream $250,000 to remodel a building near campus to use as a new store. On their respective balance sheets, this loan is
a. a liability for the bank and an asset for Greg's Ice Cream. The loan increases the money supply.
b. a liability for the bank and an asset for Greg's Ice Cream. The loan does not increase the money supply.
c. an asset for the bank and a liability for Greg's Ice Cream. The loan increases the money supply.
d. an asset for the bank and a liability for Greg's Ice Cream. The loan does not increase the money supply.
c
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Attempts to influence the law for your own private economic advantage is called
A) tax imposition. B) subsidizing. C) rent seeking. D) creating a deadweight loss.
Choose the pair of words that best completes this sentence: The nominal interest rate is the sum of the ex ante real interest rate and the _________ inflation rate, and real money balances are a function of the ___________ interest rate.
A. expected; nominal B. actual; nominal C. actual; real D. expected; real