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If a Check Was Written on Bank a for $100

Question 422

Multiple Choice

If a check was written on Bank A for $100 and Bank B presented the check to Bank A for payment, what will happen to the required reserves for each respective bank after payment is made?


A) Bank A's required reserves increase; Bank B's decrease.
B) Bank B's required reserves increase; Bank A's decrease.
C) Both banks will see an increase in their required reserves.
D) Both banks will see a decrease in their required reserves.

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