An increase in bank assets occurs when aan open market sale

An increase in bank assets occurs when

a)an open market sale is made.

b)cash is deposited into a checking account.

c) the bank recalls a loan.

d) funds are transferred from a savings account to a checking account..

e) none of the above.

Solution

Loans are bank \'s assets hence an increase in loans increases its assets.Thus amongst the given options bank assets increases when

c) bank recalls a loan.