When a bank issues a checkable deposit and loans the funds out to a business, it has transformed
A) a financial asset for a saver into a liability for a borrower.
B) a financial liability for a saver into a financial asset for a borrower.
C) a short-term liability to a borrower into a long-term asset to a saver.
D) one liability into another liability.
A
You might also like to view...
What is the difference between the Current Population Survey and the establishment survey? What are the major drawbacks for each of these measures of unemployment?
What will be an ideal response?
England's colonial policy changed dramatically following the French and Indian War. All of the following statements describe factors that contributed to this change in policy except
a. Following the war, property taxes doubled in England in order to finance the large war debt. b. Wealthy New England merchants asked the Crown to exercise more authority over colonial affairs. c. Colonists had actively traded with England's enemies during the war. d. English military leaders realized that a continuing military presence would be necessary to protect colonial borders.