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When a $10 Check Written on the First National Bank

Question 27

Multiple Choice

When a $10 check written on the First National Bank is deposited in an account at the Second National Bank,then


A) the liabilities of the First National Bank decrease by $10.
B) the liabilities of the Second National Bank increase by $10.
C) the reserves of the First National Bank increase by $10.
D) all of the above occur.
E) only A and B of the above occur.

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