Your uncle repays a \$150 loan from Tenth National Bank (TNB) by writing a \$150 check from his TNB checking account. Assume these funds are the only loans and deposits available for your uncle and the bank. Complete the following T-accounts for your uncle and TNB before your uncle repays the loan.
Added by Kimberly C.
Close
Step 1
The bank has an asset of \$150 (the loan receivable) and a liability (deposit in the uncle's checking account) of \$150. Show more…
Show all steps
Your feedback will help us improve your experience
Rashmi Sinha and 87 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Your uncle repays a $100$ loan from Tenth National Bank (TNB) by writing a $100$ check from his TNB checking account. Use T-accounts to show the effect of this transaction on your uncle and on TNB. Has your uncle's wealth changed? Explain.
Your uncle repays a $\$$100 loan from Tenth National Bank (TNB) by writing a $\$$100 check from his TNB checking account. Use T-accounts to show the effect of this transaction on your uncle and on TNB. Has your uncle's wealth changed? Explain.
Using the T-accounts of the First National Bank and the Second National Bank given in this chapter, describe what happens when Jane Brown writes a check for $\$ 90$ on her account at the First National Bank to pay her friend Joe Green, who in turn deposits the check in his account at the Second National Bank.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD