When a bank receives a check drawn on an account from another commercial bank, the bank gains
A) capital equal to the amount of the check.
B) capital equal to the required reserve ratio times the amount of the check.
C) reserves equal to the amount of the check.
D) reserves equal to the required reserve ratio times the amount of the check.
Correct Answer:
Verified
Q3: Assume that excess reserves are $35 million,
Q4: Deposits with the Federal Reserve Bank are
Q5: Assume that excess reserves are $10 million,
Q6: A commercial bank's reserves consist of
A) capital
Q7: Vault cash is part of a commercial
Q9: Which of the following assets yields a
Q10: If the required reserve ratio is .25,
Q11: A bank creates money
A) never since it
Q12: Which of the following is classified as
Q13: Which of the following is classified as
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