When you deposit your

$$$$50005000$

paycheck in your$$ bank, which was written on an account at a different$$ bank, the immediate impact on your$$ bank's balance sheet is that your$$ bank's cash items in the process of collection rise by

$$$$50005000$

and your$$ bank's

A$.$

loans rise by

$$$$50005000.$

B$.$

capital rises by

$$$$50005000.$

C$.$

deposits rise by

$$$$50005000.$

D$.$

reserves rise by

$$$$50005000.$

Part $2$

The process of asset transformation is frequently described by saying that banks are in the business of

A$.$

borrowing long and lending short.

B$.$

borrowing as little as possible.

C$.$

borrowing short and lending long.

D$.$

lending as much as possible.