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Holding All Else Constant, When a Bank Receives the Funds

Question 34

Multiple Choice

Holding all else constant, when a bank receives the funds for a deposited cheque, ________.


A) cash items in the process of collection fall by the amount of the cheque
B) bank assets increase by the amount of the cheque
C) bank liabilities decrease by the amount of the cheque
D) bank reserves increase by the amount of desired reserves

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