Homework #5

Homework #5 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.