Chapter 16 The Monetary System
Use T-accounts to show the effects of the following transactions on the First National Bank (FNB).
1. A customer withdraws $100 from his/her FNB checking account.
2. A customer deposits a check of $100 drawn on Second National Bank to his/her FNB checking account.
3. You repay a $100 loan from FNB by giving a $100 bill to FNB.
4. You repay a $100 loan from FNB by writing a $100 check from your FNB checking account.
5. You repay a $100 loan from FNB by writing a $100 check from your Second National Bank checking account.
6. FNB borrows $100 from the Fed.
7. The Fed purchases $100 of government bonds from FNB.
8. The Fed sells $100 of government bonds to FNB.
Are you interested in this answer? Please click on the order button now to have your task completed by professional writers. Your submission will be unique and customized, so that it is totally plagiarism-free.