Unformatted text preview: sold if the borrower defaults. Furthermore, borrowers can signal their type with the quality of collateral pledged. 27) Using T-accounts show what happens to reserves at Security National Bank if one individual deposits $1000 in cash into her checking account and another individual withdraws $750 in cash from her checking account. Security National Bank Assets Liabilities Reserves + $250 Checkable deposits + $250 It is fine to have this broken out into two separate transactions. The line item (reservers and checkable deposits) that has been adjusted must be listed for credit....
View Full Document
- Spring '08
- Debt, Security National Bank, Checkable