When a New Depositor Opens a Checking Account at the First

question 43

Multiple Choice

When a new depositor opens a checking account at the First National Bank,the bank's assets ________ and its liabilities ________.

• A)increase;increase
• B)increase;decrease
• C)decrease;increase
• D)decrease;decrease

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Definitions:

Asset

Resources with economic value owned by an individual, corporation, or country, expected to provide future benefits.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the amount of income subject to income tax.

Repayment

The act of paying back borrowed money, usually with interest, over a period of time according to a predetermined schedule.

Dividends

A share of a corporation’s profits distributed regularly, usually every three months, to its stockholders.