When a Cheque Is Drawn and Cleared, the

Multiple Choice

When a cheque is drawn and cleared, the

A) reserves and deposits of both the bank against which the cheque is cleared and the bank receiving the cheque are unchanged by this transaction.
B) bank against which the cheque is cleared loses cash reserves and deposits equal to the amount of the cheque.
C) bank receiving the cheque loses reserves and deposits equal to the amount of the cheque.
D) bank against which the cheque is cleared acquires reserves and deposits equal to the amount of the cheque.