When a check is cleared against Bank A after being deposited at Bank B,
A) both Bank A's and Bank B's liabilities increase
B) both Bank A's and Bank B's liabilities decrease
C) Bank A's liabilities increase and Bank B's liabilities decrease
D) Bank A's liabilities decrease and Bank B's liabilities increase
E) there is no change in either bank's liabilities
Correct Answer:
Verified
Q125: When the Fed buys U.S.government securities from
Q131: Exhibit 14-2 Q132: If the Fed purchases government securities on Q132: If a bank borrows $1,000 from the Q133: Which of the following would likely increase Q134: Suppose the Fed purchases $5,000 in U.S.government Q135: In the money and credit expansion process,when Q138: Suppose you bank at Bank A and Q139: Exhibit 14-2 Q141: The simple money multiplier is defined as
Exhibit 14-2
Exhibit 14-2
A)the
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