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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....
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This note was uploaded on 10/17/2009 for the course EC 370 taught by Professor Staff during the Spring '08 term at Oregon.
- Spring '08