The Writing of a $1,000 Check That Is Drawn on Bank

Multiple Choice

The writing of a $1,000 check that is drawn on Bank A and deposited in Bank B

A) increases the money supply initially by $1,000.
B) reduces total reserves of Bank A by $1,000 and increases the total reserves of Bank B by the same amount.
C) reduces the required reserves of Bank A by $1,000 and increases the required reserves of Bank B by the same amount.
D) reduces the excess reserves of Bank A by $1,000 and increases the excess reserves of Bank B by the same amount.