When a Customer Deposits $1,000 in a Bank,the Deposit Is

question 86

Multiple Choice

When a customer deposits $1,000 in a bank,the deposit is:

• A)an asset of the Federal Reserve.
• B)included in M1 if it is currently in a commercial bank's vault.
• C)a liability to the customer.
• D)an asset to a commercial bank if it is currently in the bank's vault.
• E)a liability for the bank as the bank owes it to the customer.

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