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If a Check Is Written for the Full Amount of a Derivative

Question 49

Multiple Choice

If a check is written for the full amount of a derivative deposit created by a bank loan and then is sent to a bank in another city for deposit


A) the lending bank would lose all of its excess reserves.
B) the lending bank would still have reserves to lend.
C) the full amount would be added to the receiving bank's excess reserves.
D) the receiving bank would lose excess reserves.

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