Question

Please use T-Account to classify each of these transactions as an asset, a liability, or neither for each of the “players” in the money supply process—the federal reserve, banks, and depositors.

a. You get a $5,000 loan from the bank to buy an automobile.

b. You deposit $500 into your checking account at the local bank.

c. The Fed provides an emergency loan to a bank for $2,000,000.

d. A bank borrows $400,000 in overnight loans from another bank.

e. You use your debit card to purchase a meal at a restaurant for $90.

Answer 1

a) Its a benefit for bank & accountability fro person who takes loan

B) Its a benefit for banks, and and accountability to the bank & depositor.

c) Its a benefit for federal reserve, banks and depositors and accountability to the bank.

d) It is abenefit for banks and accountability to the bank.

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