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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is the Idea between Assets and Liability?

Author: eric_galvao



Answer:

-When a Commercial Bank dishes out Loans to Customers, Money is Created -The Customer becomes a Debtor to the Bank. They must Repay the Loan + Interest on it -Hence, the Loan becomes an ASSET for the Bank -The Customers Deposit is an LIABILITY for the Bank


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