Money as a Record-Keeping System

Your banking app shows $600. From the bank's side of the books, what is that $600?

• An asset the bank owns
• A liability: money the bank owes you
• Cash set aside in the vault under your name

A bank approves a $3,000 loan and pays it into the borrower's account. What happens to the total of all deposits at that bank?

• It rises by $3,000
• It stays the same, because the money came from other savers
• It falls by $3,000